Some countries do not allow firms to buy back stock from


Dividend Policies and Stock Buyback Restrictions

Some countries do not allow firms to buy back stock from their stockholders. Which of the  following  would  you  expect  of  dividend policies  in  these  countries  (relative  to countries that don't restrict stock buybacks)?

Higher portion of earnings will be paid out in dividends; more volatile dividends Lower portion of earnings will be paid out in dividends; more volatile dividends Higher portion of earnings will be paid out in dividends; less volatile dividends Lower portion of earnings will be paid out in dividends; less volatile dividends Explain.

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Accounting Basics: Some countries do not allow firms to buy back stock from
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