Question: There is a remarkable difference in post-split behavior of CAR for splits with dividend increases versus those with dividend decreases. Do these trends support or

  1. There is a remarkable difference in post-split behavior of CAR for splits with dividend increases versus those with dividend decreases. Do these trends support or contradict efficient market hypothesis? How will you respond to the following claim: Stock splits are credible signals undertaken by corporate managers that convey beneficial information to the market (investors).?

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