Definition for : Clientele effect
Clientele effect is generated by the different Dividend taxation of different categories of Investors. High-Dividend stocks are sought out by Investors who face low tax rates, whereas stocks that offer low Dividends and large capital gains are preferred by Investors in the highest tax brackets.
(See Chapter 38 Share issues of the Vernimmen)
To know more about it, look at what we have already written on this subject