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3. Explain the information content, or signaling, hypothesis and the clientele effect?

3. Explain the information content, or signaling, hypothesis and the clientele effect?

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The information content is widely cited in the financial literature .The information content of dividend hypotheses is a firm specific hypothesis which contents that managers of a firm use the dividend to signal asymmetric information about the firms future earnings . Clientele effect describes how current investors react to substantial changes in a company 's policies .Clientele effect describes the way in which individual investors seek outstocks from a specific category .

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9.       Dividend policy                                 &nb
9.       Dividend policy                                                                          a. Define the information content effect of a dividend, and discuss whether or not it conveys information about a firm’s dividend policy.                                                                                 b. Define the clientele effect of dividend policy, and discuss whether or not it conveys information about a firm’s market value.                                                                                         
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