How are dividends used as a signaling device by corporate management? To the extent that dividends are

Question:

How are dividends used as a signaling device by corporate management? To the extent that dividends are a signaling device, how are changes related to stock prices?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...