Dividend irrelevancy theory and Domino effect: Difference between pages

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imported>Doug Williamson
(Reference and link with Capital structure page.)
 
imported>Doug Williamson
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In financial theory dividend payments and policies should be irrelevant when financial markets are efficient.  
In the context of systemic risk, the same as contagion.  


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


#Their informational content. This informational content is known as ''signalling''.
==See also==
#The potential to move closer to, or away from, a firm's optimal capital structure.
*[[Contagion]]
 
*[[Systemic risk]]
 
== See also ==
* [[Lintner]]
* [[Residual theory]]
* [[Rights issue]]
* [[Capital structure]]

Revision as of 13:24, 3 August 2016

In the context of systemic risk, the same as contagion.


See also