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If you are an investor, you want to invest $1 to get $2 back (aka shareholder value). If your dividends are not growing, you divest and invest somewhere else.
by partycoder 10y ago
If you are an investor, you want to invest $1 to get $2 back (aka shareholder value). If your dividends are not growing, you divest and invest somewhere else.
Now, the thing is very competitive, and many companies offer "exponential growth". If your growth slows down, if the perspective is not good, divestment starts and that is a downwards spiral.
To stay competitive and to prevent an investor run, companies are forced to take massive risks. And risks materialize into huge disasters... like this one apparently.