Research On Signaling Hypothesis Of Listed Company's Dividend Policy

Stock dividend is listed company's rewards to its investors, and it is signal of listed company's future to its investors, basing on listed company's predict of itself. Using method of demonstration, this article finds that there is signaling hypothesis in China's capital market, and dividend policy can impress information of company's future, company which increases its cash dividend has more income than company which reduces its cash dividend. After analyzing the result, this article brings forward advice to the policy of listed company's dividend.