This is called the «
dividend irrelevance theory,» and it infers that dividend payouts have minimal impact on stock price.
This is known as
the dividend irrelevance theory, which originated in a 1961 paper by Merton Miller and Frank Modigliani.
In 1961, Merton Miller and Frank Modigliani published a landmark paper that became the basis for what is now known as
the dividend irrelevance theory.
These practical examples can conflict with
the dividend irrelevance theory.