The clientele effect supports the treatment of dividends as a residual.

Name: The clientele effect supports the treatment of dividends as a residual.
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

The clientele effect suggests that different groups of investors (clientele) prefer different dividend policies, and companies tend to adopt a dividend policy that suits the preferences of their current shareholders, rather than treating dividends as a residual outcome of their investment and financing decisions.

The Clientele Effect Supports the Treatment of Dividends as a Residual