What managerial logic might lie behind a stock split or a stock dividend?

What will be an ideal response?

A logic behind a stock split or a stock dividend could be based on the informational content of the dividend-split
announcement. Stock dividends and splits have generally been associated with companies that have growing earnings.
The announcement of a stock dividend or split has therefore been perceived as favorable news. The empirical
evidence, however, fails to verify these conclusions. Most studies indicate that investors are perceptive in identifying
the true meaning of such a distribution. If the stock dividend or split is not accompanied by a positive trend in earnings
and increases in cash dividends, price increases surrounding the stock dividend or split are insignificant. Therefore, we
should be suspicious of the assertion that a stock dividend or split can help increase investors' net worth.