A postulation that the dividend policy of a company should have minimal effect on the investment decisions made by an investor due to the fact that the payment or non-payment of a dividend will not necessarily impact the net return to the investor. The assumption is that dividends not paid are reinvested by the company to generate more profit, thus higher stock values.
Related information about dividend irrelevance theory:
- Dividend Irrelevance Theory Definition | Investopedia
A theory that investors are not concerned with a company's dividend policy since they can sell a portion of their portfolio of equities if they want cash.
- CFA Level 1 Study Guide - Corporate Finance - Dividend Theories ...
This is known as the "dividend-irrelevance theory", indicating that there is no ... MM's dividend-irrelevance theory says that investors can affect their return on a ...
- What Is the Dividend Irrelevance Theory?
Sep 26, 2012 ... The dividend irrelevance theory is a concept based on the premise that the dividend policy of a company should not be considered...
- What is dividend irrelevance theory? definition and meaning
Definition of dividend irrelevance theory: A postulation that the dividend policy of a company should have minimal effect on the investment decisions made by an ...
- Dividend irrelevance theory - Encyclopedia of Management
Jan 20, 2012 ... Dividend irrelevance theory is one of the major theories concerning dividend policy in an entreprise. It was first developed by Franco Modigliani ...
- Dividend Irrelevance Theory: Definition from Answers.com
Dividend Irrelevance Theory A theory that investors are not concerned with a company's dividend policy since they can sell a portion of their portfolio.
- StudyFinance: Dividend Policy
Dividend Irrelevance Theory. This theory purports that a firm's dividend policy has no effect on either its value or its cost of capital. Investors value dividends and ...
- chapter 13 dividend policy answers - College of Business and ...
The dividend irrelevance theory holds that dividend policy has no effect on either the price of a firm's stock or its cost of capital. The principal proponents of this ...