The dividend clientele effect concept was originally developed by ____.
A) Myron Gordon
B) Merton Miller and Franco Modigliani
C) Milton Friedman
D) Paul Samuelson

Question

Quizplus · Accepted Answer

The dividend clientele effect concept was originally developed by Merton Miller and Franco Modigliani as part of their theories on dividend policy in firms. Their work on the subject, particularly the Miller and Modigliani theorem, suggests that in perfect markets, the dividend policy of a company is irrelevant to its value, but in real markets, investors might have preferences for dividends or capital gains, leading to the clientele effect.

The Dividend Clientele Effect Concept Was Originally Developed by ____