The Affect Research On The Liquidity Of Stock Dividend

Our marketable company always prefers to use stock dividend as its dividend policy, but stock dividend only changed the structure of its balance sheet, didn't influence marketable company's factual and future cash flow. So, the impact of stock dividend should inexistence in theory, although the impact was existence in fact. Some scholars considered that stock dividend make stock price drop to a rational section, increase the liquidity of stock by attract more investors or increase stock number.Many literatures discussed the impact on price of stock dividend, this paper emphasized on the liquidity of stock, discuss whether investor buy more stock for reasons of stock price drop, increase liquidity of stock. This paper used Bid Bid-Ask Spread, rare of stock turn, Martin Index as liquidity index, adopted event method analyze the sample of a marketable companies on SHENZHEN stock exchange, analyzed stock response on bulletin day, 15 days before bulletin day, 15 days after bulletin day, and dividend day, 15 days before dividend day, 15 days after dividend day by test the liquidity indexes, also considered some factor's influence, such as about the scale of companies, quantity of stock, the trend of share index at bulletin day and dividend day.The result of this paper were: 1) The Market mircrostructure of Chinese stock is'nt market maker, two-part stock cann't circulate and the scale of current stock is small, so, filling right effect make dividend event don't diluate the price , the stock price couldn't reach Optimal Price ;2)The meanings of Bid-ask speed in Chinese has been changed,didn't reflect the real trade cost , only reflect the possible trade cost , contained desire of price popple , dinn't belong absolute liquidity again; 3)Turnover rate is a liquidity's index , speculation's index too,which can explain one side of liquidity, but this index is defective in Chinese stock market;4) Martin Index was decrescent when dividend event occurred, display the liquidity of stock was improved, so, the Martin Index is compatible index to measure Chinese stock liquidity; 5)Stock dividend event affect the liquidity in the stock dividend day, stock dividend event cann't dividend event in the bulletin day;6) The quantity stock dividend and trend of stock market was significant factors that affect the liquidity.