The Information Effect Hypothesis Implies That Increasing Dividends Provides a More

question 169

True/False

The information effect hypothesis implies that increasing dividends provides a more credible signal of higher future earnings than does management's assertion that future earnings will be higher.

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Definitions:

Cohen's D

An indicator of the magnitude of difference, displaying the standardized deviation between two averages.

Cohen's D

A measure of the size of an effect for a hypothesis test; it is the difference between two means divided by the standard deviation of the data.

Cohen's D

A statistic used to quantify the difference between two group means relative to the standard deviation of the sample.

Cohen's D

A measure of effect size that quantifies the difference between two group means in standard deviation units.