Identifying the Dividend Irrelevance Theory

ABC Corporation is contemplating its dividend policy and seeks to maximize its shareholder value. The management is considering various theories of dividend policy. One of these theories suggests that dividends are irrelevant to the value of a firm in a perfect market, as investors can create their own dividends through selling shares if they need cash. This theory implies that the manner in which a company returns capital to its shareholders does not affect its stock price in the long run.

Which theory best describes this idea?