Question

The unwillingness of many older, giant firms to cut dividends is referred to as ___.

Answer 1

The unwillingness of older, giant firms to cut dividends is referred to as dividend stickiness.

Step-by-step explanation:

The unwillingness of many older, giant firms to cut dividends is referred to as dividend stickiness. Dividend stickiness occurs when companies are reluctant to reduce or eliminate dividend payments to shareholders because they fear negative reactions from investors, including a decrease in stock price. This phenomenon is often observed in established companies that have a long history of paying regular dividends.