Clientele effect
Encyclopedia
Clientele effect represents the impact on the stock price that investors would cause in reaction to a change in policy of a company. Consequently, dividend policy
won't effect the value of the stock as long as clientele exist, dividend policy is irrelevant.
Dividend policy
Dividend policy is concerned with taking a decision regarding paying cash dividend in the present or paying an increased dividend at a later stage. The firm could also pay in the form of stock dividends which unlike cash dividends do not provide liquidity to the investors, however, it ensures...
won't effect the value of the stock as long as clientele exist, dividend policy is irrelevant.