What Is the Information Content Effect

What is the information content effect?

A) any type of new information that causes a firm to cease paying dividends
B) any news announcement that was anticipated and thus produces no reaction from investors
C) the primary contributing data that helps directors determine the amount of a particular dividend payment
D) any type of reaction from a shareholder in response to a news announcement related to the stock issuer
E) the financial market's reaction to a change in the amount of a firm's dividend

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