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 (a bird in the hand) are less risky to risk-averse investors than are potential future capital gains, is known as the bird-in-the-hand theory. The dividend irrelevance theory suggests that the firm's dividend policy does not affect its market value and the residual dividend model suggests that a firm should only pay dividends from residual earnings after making all necessary investments.

The Theory That Argues That Dividends That the Firm Has