Factors Influencing Dividend Reductions

XYZ Corporation, a publicly traded company, has consistently paid a dividend to its shareholders for the past 20 years. Recently, the company has announced a reduction in its dividend payments due to lower than expected earnings growth and an upcoming investment in a new product line. Additionally, the company's management has stated that they are considering repurchasing shares instead of paying dividends to enhance shareholder value.

Which of the following factors primarily influenced XYZ Corporation's decision to reduce its dividend payments?