The Clientele Effect Refers to

question 57

Multiple Choice

The clientele effect refers to

• A) the relevance of dividend policy on share value.
• B) the firm's ability to attract stockholders whose dividend preferences are similar to the firm's dividend policy.
• C) the informational content of dividends.
• D) the "bird-in-the-hand" argument.

---

Definitions:

Compliance Conformity

The process by which individuals adjust their behavior or beliefs to align with the norms or standards of a group or authority figure.

Organizational Teams

Groups of individuals within an organization, structured to work collaboratively towards common objectives, leveraging diverse skills and perspectives.

Productivity

The measure of efficiency in converting inputs into useful outputs, commonly used to gauge the effectiveness of labor, machines, and systems.

Cohesiveness

The degree to which members of a group or team feel bonded together, which affects their willingness to cooperate and work collaboratively.