The theory that argues that dividends that the firm has committed to pay are less risky to risk-averse investors than are potential future capital gains is referred to as ___________________.

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The theory that argues that dividends that the firm has committed to pay are less risky to risk-averse investors than are potential future capital gains is referred to as the "bird-in-the-hand" theory. The dividend irrelevance theory states that the value of a firm is not affected by its dividend policy, and the residual dividend model suggests that a firm should only pay dividends with the residual earnings after all investment opportunities with positive net present values have been taken.

The Theory That Argues That Dividends That the Firm Has