Dividend irrelevancy theory - Revision history

Doug: Add link.

2024-06-08T22:07:58Z

Add link.

← Older revision		Revision as of 22:07, 8 June 2024
Line 26:		Line 26:
	*[[Signalling]]		*[[Signalling]]
	* [[Theoretical ex-rights price]]		* [[Theoretical ex-rights price]]
			* [[Total shareholder return]] (TSR)

	~~[[Category:The_business_context]]~~
	[[Category:Corporate_finance]]		[[Category:Corporate_finance]]
			[[Category:Financial_products_and_markets]]
	[[Category:Investment]]		[[Category:Investment]]
	[[Category:~~Financial_products_and_markets~~]]		[[Category:The_business_context]]

2023-04-15T15:45:51Z

Add link.

2021-01-10T17:10:43Z

Layout.

← Older revision		Revision as of 17:10, 10 January 2021
Line 1:		Line 1:
	In financial theory, dividend payments and policies should be irrelevant when financial markets are efficient.		In financial theory, dividend payments and policies should be irrelevant when financial markets are efficient.


	This is because amounts retained - or distributed - by the company would in theory earn the same future rate of return for the investors.		This is because amounts retained - or distributed - by the company would in theory earn the same future rate of return for the investors.

2021-01-04T22:05:45Z

Clarify that rate of return is future.

← Older revision		Revision as of 22:05, 4 January 2021
Line 1:		Line 1:
	In financial theory, dividend payments and policies should be irrelevant when financial markets are efficient.		In financial theory, dividend payments and policies should be irrelevant when financial markets are efficient.

	This is because amounts retained - or distributed - by the company would in theory earn the same rate of return for the investors.		This is because amounts retained - or distributed - by the company would in theory earn the same future rate of return for the investors.

	Moreover, investors who require cash could sell part of their holdings.		Moreover, investors who require cash could sell part of their holdings.

2021-01-04T22:04:05Z

Typo correction: 'their' holdings.

← Older revision		Revision as of 22:04, 4 January 2021
Line 3:		Line 3:
	This is because amounts retained - or distributed - by the company would in theory earn the same rate of return for the investors.		This is because amounts retained - or distributed - by the company would in theory earn the same rate of return for the investors.

	Moreover, investors who require cash could sell part of ~~the~~ holdings.		Moreover, investors who require cash could sell part of their holdings.

	While investors who don't require cash could use any dividend distributions to buy more shares in the company.		While investors who don't require cash could use any dividend distributions to buy more shares in the company.

2021-01-04T22:00:35Z

Add explanation.

← Older revision		Revision as of 22:00, 4 January 2021
Line 1:		Line 1:
	In financial theory dividend payments and policies should be irrelevant when financial markets are efficient.		In financial theory, dividend payments and policies should be irrelevant when financial markets are efficient.

			This is because amounts retained - or distributed - by the company would in theory earn the same rate of return for the investors.

			Moreover, investors who require cash could sell part of the holdings.

			While investors who don't require cash could use any dividend distributions to buy more shares in the company.


Line 6:		Line 12:
	#Their informational content. This informational content is known as ''[[signalling]]''.		#Their informational content. This informational content is known as ''[[signalling]]''.
	#The potential to move closer to, or away from, a firm's optimal capital structure.		#The potential to move closer to, or away from, a firm's optimal capital structure.
	#Possibly, [[clientele]] effects.		#Possibly, [[clientele]] effects, including taxes on investors.


	== See also ==		== See also ==
			* [[Capital structure]]
			* [[Clientele]]
	* [[Dividend]]		* [[Dividend]]
	* [[Lintner]]		* [[Lintner]]
	* [[Residual theory]]		* [[Residual theory]]
	* [[Rights issue]]		* [[Rights issue]]
			*[[Signalling]]
	* [[Theoretical ex-rights price]]		* [[Theoretical ex-rights price]]
	* [[Capital structure]]
	* [[Clientele]]
	*[[Signalling]]

	[[Category:The_business_context]]		[[Category:The_business_context]]

2020-04-23T22:38:49Z

Classify page.

← Older revision		Revision as of 22:38, 23 April 2020
Line 18:		Line 18:
	* [[Clientele]]		* [[Clientele]]
	*[[Signalling]]		*[[Signalling]]

			[[Category:The_business_context]]
			[[Category:Corporate_finance]]
			[[Category:Investment]]
			[[Category:Financial_products_and_markets]]

2016-11-14T20:23:11Z

Layout.

← Older revision		Revision as of 20:23, 14 November 2016
Line 1:		Line 1:
	In financial theory dividend payments and policies should be irrelevant when financial markets are efficient.		In financial theory dividend payments and policies should be irrelevant when financial markets are efficient.


	But in practice decisions about dividend levels are important because of:		But in practice decisions about dividend levels are important because of:

2016-11-12T21:49:23Z

Add link.

2015-07-15T15:15:28Z

Align with course materials - linked to Signalling

← Older revision		Revision as of 15:15, 15 July 2015
Line 3:		Line 3:
	But in practice decisions about dividend levels are important because of:		But in practice decisions about dividend levels are important because of:

	#Their informational content. This informational content is known as ''signalling''.		#Their informational content. This informational content is known as ''[[signalling]]''.
	#The potential to move closer to, or away from, a firm's optimal capital structure.		#The potential to move closer to, or away from, a firm's optimal capital structure.
	#Possibly, [[clientele]] effects.		#Possibly, [[clientele]] effects.
Line 15:		Line 15:
	* [[Capital structure]]		* [[Capital structure]]
	* [[Clientele]]		* [[Clientele]]
			*[[Signalling]]