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Business, 30.04.2021 21:10 mvongphakdy8124

According to the signaling theory of dividends Group of answer choices payment of dividends does not affect stock prices because investors can create their own dividend by buying and selling shares. changes in stock prices associated with dividend changes are due to the information conveyed through dividends and not due to dividends themselves. stock price decreases associated with a dividend cut is attributable to reduction of dividends. firms attract clientele of investors who prefer signals provided by the firm through dividends.

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