TY - JOUR AU - Shrestha, Sanjay PY - 2014/03/09 Y2 - 2024/03/29 TI - Concept of Dividend Irrelevance Theory JF - Academic Voices: A Multidisciplinary Journal JA - Acad. Voices VL - 3 IS - 1 SE - Articles DO - 10.3126/av.v3i1.9988 UR - https://www.nepjol.info/index.php/AV/article/view/9988 SP - 46-49 AB - <p>This Article states that dividend policy does not affect the value of the firm. Their argument is that stack holder&rsquo;s wealth is unaffected whether corporate profits are distributed or retained in the business. Their reasoning is that under an efficient market condition, a firm&rsquo;s value is determined by its potential earning power and it does not affect the decision on how profits are to be split between dividends and retained earning. Therefore, as per M-M theory a firm&rsquo;s value is independent of dividend policy.</p><p>Academic Voices, Vol. 3, No. 1, 2013, Pages 46-49</p> <p>DOI: <a href="http://dx.doi.org/10.3126/av.v3i1.9988">http://dx.doi.org/10.3126/av.v3i1.9988</a></p><p>&nbsp;</p> ER -