Why isn't the retained earnings of a public company always distributed back to the shareholders?

Question

Shareholders own a public company, so why shouldn't all of a company's income be distributed back to them? Why are dividends (if any) just a small fraction of a company's retained earnings?

Answer 1

simple logic man,

why we prefer savings ...??

answer is future is uncertain so to secure our self from risky situations we will save current earning.

Likely company also with the view of securing them self from future they will retain money for future acts

And one more reason is that management always with the view that money can be utilized optimum when its with the company not with shareholders. An individual can max spend such income or he can chose any risk free investment were return is low.

Hope this comment is helpful.