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An Empirical Study On Signaling Effect Of Cash Dividend Of Listed Companies In China

Posted on:2006-05-10Degree:MasterType:Thesis
Country:ChinaCandidate:G ZhengFull Text:PDF
GTID:2179360182966007Subject:Finance
Abstract/Summary:PDF Full Text Request
From the viewpoint of signaling effect, this thesis studies empirically on cash dividend of listed companies in China. We draw the conclusion that signaling effect of dividend didn't work apparently in China as in foreign countries, the cash dividend policy of last year had more effect on that of this year, only after compulsive cash dividend was enacted in 2001, then did cash dividend signal some information about profit of listed companies. Therefore, outer investors should not use cash dividend as a tool of forecasting future gains of listed companies in China, especially at transition era of our capital market nowadays.We hold most of existing research literature orientates their angle to announcement effect of dividend, which determine its existence of signaling effect through computing CAR around the day of dividend announcement. CAR approach is not appropriate to study the signaling effect of dividend in China. CSRC prescribed listed companies must proclaim profit distribution projection at the same time when come out with annual report, that's to say, information about dividend and profit as well as auditing report are available to all investors in market, which leads failure of maintain the clearness of event window by shortening it.As for structure of this thesis, firstly, the former part of this thesis reviews classical theory about signaling effect of dividend detailedly, which consists of three parts: foundation of theory, classic models domestically and overseas, and empirical tests. What's more, at the empirical part, we select identical companies' samples of several years respectively, ensuring continuity of approach and data as well as conclusion, offsetting the flaws of selecting samples of every single year.Finally, according to empirical conclusion, some advice are brought forth eventually, which may help make cash dividend policy of listed companies perfect and improve the constitution of investor protection.
Keywords/Search Tags:Dividend Policy, Cash Dividend, Signaling Effect, Compulsive Dividend
PDF Full Text Request
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