The "bird in the hand" argument of dividend theory indicates that by paying a large dividend and forcing the company to justify future expenditures, value is created by controlling management.

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The "bird in the hand" argument of dividend theory suggests that investors value dividends more than future capital gains because dividends are certain and capital gains are uncertain, not specifically about controlling management to justify future expenditures.

The "Bird in the Hand" Argument of Dividend Theory Indicates