Explain “Bad” Financial News Assignment | Online Assignment
Consider the following scenario: Imagine your firm has some ostensibly bad financial news. It has decided to cut its annual dividend in half. Understandably, some of your employees are in fear the firm is in jeopardy. They are concerned that many in the firm might be losing their jobs in the near future, and they are updating their resumes to look for other jobs. As their manager, you must explain to your employees why this is not necessarily bad news. To help your employees understand the potential outcomes of this decision, you must provide them with some more information. Then use online resources, to find an example of a firm that has reduced its dividends by 30% or more within the last 5 to 10 years. Next, find the official communications of the firm regarding the reasons it presented for its dividend reduction and evaluate the outcomes of the decision. Finally. Answer to the following: 1-An explanation to your employees about the potential outcomes of the firm’s decision. Your explanation should include the potential positive and negative outcomes of the decisions in a professionally frank and balanced way. 2-An account of potentially positive and negative outcomes using Benoit’s theory of image restoration as discussed in Erickson, Weber, and Segovia (2011) using the example of the firm you identified in your research.
