Relevance theory of dividend

What is the relevance theory of dividend? M. Gorden, John Linter, James Walter and Richardson are associated with the relevance theory of dividend. According to them, Dividend Policy has a positive impact on the firm’s position in the stock market. Higher Dividend will increase the value of stock whereas low dividend wise reverse. More and …

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Irrelevance Theory of Dividend

Theories of Dividend There are conflicting theories of dividend regarding impact of Dividend Decision on the valuation of the firm. As one school of thought feels that dividend decision does not affect the shareholders’ wealth and also the valuation of firm. While another thought feels Divided Decision materially affects the shareholders’ wealth and also the …

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