A business has no incentive to do what it does not want to do. The government has to make a law or create a carrot for them to pursue it. Even with this carrot its dubious whether the company is adequately pursuing the government's agenda. Shareholders want or rely on a dividend and if they don't get it they pull their money out and invest it elsewhere. If it happens on a large scale there will be much less cash for a companies day to day operations, which has a knock-on effect on being able to pay the employees, and the loan on the assets if the cash flow on the revenue on the products and/or services is much less than that going towards expenses and thus making a loss. Further pushing down its value in the eyes of potential shareholders, who will bid even less if they still have an incentive to do so.
#9176458, By Lamb Stocks and shares. Maybe I'm just a bit dim...
Lamb 475 posts
Seen 1 week ago
Registered 7 years ago