According to the Text,dividends Are Value-Relevant Even Though the Firm's

question 49

Essay

According to the text,dividends are value-relevant even though the firm's dividend policy is irrelevant.How can that be true? What is the key assumption in the theory of dividend policy irrelevance?

---

Definitions:

Consensus

General agreement among all members of a group or the process of reaching such an agreement.

Disruptive Act

An innovation or event causing a radical change in an existing industry or market by displacing old methods, products, or companies.

Social Loafing

The occurrence in which people put in less effort towards achieving a goal while working in a group compared to working by themselves.

Work Ethics

Principles that govern a person's conduct at work, typically emphasizing hard work, integrity, and responsibility.