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The Clientele Effect Hypothesis

Addition of driver and passenger species to a community will therefore have unequal effects on community function.

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The Clientele Effect Hypothesis

This paper deals with two empirical aspects of the Elton and Gruber tax-induced clientele hypothesis. The first is the extent to which estimates of the central location of the ‘ex-dividend’ statistic, or marginal capitalisation of the dividend due, is influenced by different methods of estimation. The second is the degree to which the widely reported ‘dividend yield’ effect is a robust feature of the data, or whether its origins lie in aggregation effects or thin trading. The results suggest that the yield effect is much weaker than is generally claimed, bringing into question the simple tax-induced clientele hypothesis as the main explanation of cum-div to ex-div market value transitions.

The tax‐clientele hypothesis attributes these effects to personal taxation.

From the logic about the clientele effect given in the section: A brief discussion of some dividend theories, we inferred that managers try to follow practices that smooth their dividend patterns over time so that dividend stability is achieved. Well there is another, perhaps more subtle reason why managers prefer to smooth dividend payouts. It's based upon the twin concepts of asymmetric information and the signaling aspect of dividend announcements.

this result is consistent with the clientele effect hypothesis.

Large audit firms would therefore strive to maintain their independence to keep up their image to maintain their clients.

When a business is financed under the PLS scheme it is necessary thatthe actual profit/loss made using that money be calculated. Though no satisfactorymethods have yet been devised, the first requirement for any such activityis to have the necessary accounts. On the borrowers’ side there are twodifficulties: one, many small-time businessmen do not keep any accounts,leave alone proper accounts. The time and money costs will cut into hisprofits. Larger businesses do not like to disclose their real accountsto anybody. On the banks’ side the effort and expense involved in checkingthe accounts of many small accounts is prohibitive and will again cut intotheir own share of the profits. Thus both sides would prefer to avoid havingto calculate the actually realised profit/loss. To quote Iqbal and Mirakhor:23

(Recall that every point on the PPF is productive efficient hence there is opportunity involved)

We usually refer productive efficiency to be the point where the goods and services are produced at the lowest point of the SRAC.

Learn how to calculate the dividend growth rate

Results are consistent with some sort of dividend‐clientele effect but are inconsistent with tax clienteles.

Foley says hormones had a dramatic effect on her. She credits growth hormone in particular with burning 10 pounds of she’d begun referring to as her pooch and restoring muscles she thought were gone forever. She claims the sun damage and fine lines on her face started to fade. She slept better and had more energy. “Whatever dangers they say it has aren’t a concern for me. The benefits outweigh them,” she says.

Theories that supported dividend relevance à Lintner’s dividend’s policy, tax preference theory, Agency theory, Signaling Hypothesis and Clientele Effect Hypothesis.

Results are consistent with some sort of dividend‐clientele effect but are inconsistent with tax clienteles.
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    The designer’s main goal is to satisfy their client’s desire in terms of style for their preferred space.

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    The study reveals that the clientele effect in Singapore stockmarket is the same as that observed in the United States.

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    02/02/1990 · Results are consistent with some sort of dividend-clientele effect, ..

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IACP - The Public Image of the Police

Consider the case where the firm has followed a particular payout policy for a long time, when it is somewhat secretive about its plans or strategies, or when stockholders don't make an effort to keep up on the factors impacting the value of their stock investment. In this case signaling will be most pronounced when an existing dividend policy is changed unexpectedly.

Price Determination under Oligopoly - OoCities

This implies that as long as the market is efficient and the investment decision of the company is known to the public, dividend policies are irrelevant.

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