%0 Journal Article
%T Concept of Dividend Irrelevance Theory
%A Sanjay Shrestha
%J Academic Voices: A Multidisciplinary Journal
%P 46-49
%D 2013
%R 10.3126/av.v3i1.9988
%X This Article states that dividend policy does not affect the value of the firm. Their argument is that stack holderĄ¯s wealth is unaffected whether corporate profits are distributed or retained in the business. Their reasoning is that under an efficient market condition, a firmĄ¯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 firmĄ¯s value is independent of dividend policy.
%K Dividend policy
%K Market value per share
%K Investment Policy
%K Cost of equity
%K No. of New shares
%U http://www.nepjol.info/nepal/index.php/AV/article/view/9988