Dividend Irrelevance Theory

Business, Legal & Accounting Glossary

Definition: Dividend Irrelevance Theory


Dividend Irrelevance Theory


Full Definition of Dividend Irrelevance Theory


A postulation that the dividend policy of a company should have minimal effect on the investment decisions made by an investor due to the fact that the payment or non-payment of a dividend will not necessarily impact the net return to the investor. The assumption is that dividends not paid are reinvested by the company to generate more profit, thus higher stock values.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/dividend-irrelevance-theory/
Modern Language Association (MLA):
Dividend Irrelevance Theory. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/dividend-irrelevance-theory/.
Chicago Manual of Style (CMS):
Dividend Irrelevance Theory. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/dividend-irrelevance-theory/ (accessed: April 19, 2024).
American Psychological Association (APA):
Dividend Irrelevance Theory. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/dividend-irrelevance-theory/

Definition Sources


Definitions for Dividend Irrelevance Theory are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.