According to the bird-in-the-hand theory (proposed by Lintner and Gordon) believes that dividends are safer than retained earnings. Therefore, investors prefer higher dividends, and as a result, if the firm adopts a higher-dividend policy, its firm value will increase. True False

"Clientele Effect concerning dividend policy says that there are certain groups of investors preferring higher dividends, certain groups preferring lower dividends, and some being indifferent. This effect is largely due to the differential tax treatment in the U.S

True False