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The Company might waste their money if they do not make the use of their retained profit for a longer period which might affect the growth of the company. If retained income are used excessively then the company may find it difficult for financing their major activities (Browne, 2009). The company may lose their shareholders if they are not paid dividend due to retaining the profits.The company may have paid for them if they do not make use of the retained earnings for a long time, which can affect the growth of the company. If there are too many accumulated money, companies may find it difficult to fund important activities (Browne, 2009) the company may lose their shareholders if they didn't pay dividends from retained earnings.
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