The Announcement Effect Of Dividend In Shanghai Stock Exchange And Empirical Study

Dividends policy is not only a financial problem called bonus puzzle, but an important decision which influence stock price , capital structure and so on, therefore western financial circle pay great attention to it. Proper dividends policy not only can provide cheap capital resource for corporation, stabilize stock price of corporation, but also is helpful for company to attract poten ial investor and creditor, to establish good financial imagination. In the process of booming development of China's stock market, the listed firms' dividends policy didn't play its good role that it should be . Recently, especially from 2000, under the leading of policy of China's stock supervisory commission , the listed firms' dividends policy has some new changing which accept highly concerning of market. In the new situation , it is very necessary to discuss whether the listed firms' dividends policy influence corporations' values or not.This paper' studying aim is to indicate whether the listed firms' dividends policy influence corporations' values or not by examining whether it exists extra earning in the declaration term of new stock of Shanghai Stock Exchange in 2003, and if it exists extra earning, how much it is from dividend and what kind of factor influence extra earning.This paper is consist of four chapter.Chapter 1 is theory summarization .Firstly it simply introduce the theory of dividends policy concerning the topic of this paper, which establish theory foundation for the late empirical study. Secondly, it outlines the classic literatures about dividends policy written by foreign and domestic scholar.Chapter 2 analyzes the situation of dividends distribution of the listed firms of China. Firstly, it sets forth some common forms of dividends distribution of the listed firms of China, and simply analyze the character of dividends distribution of the listed firms of China in past years using history data at the same time. Secondly, it probes into the cause of dividend distribution policy in past years. Finally, it analyzes thereason of new variety aiming at the new changing of dividends distribution policy of the listed firms in recent years.Chapter 3 is the empirical study ,which is t le emphases of this paper. This paper aim at the new stock of Shanghai Stock Exchange in 2003, take the booking declaration day as the observation term, and st ady the declaration effect of the first dividend of the new stock by event studying. This chapter carry through from three step. Firstly, it makes statistical significant testing of extra earning in declaration term of new stock. Secondly, it sets up linearity regression model of one factor to explain how much extra earning is from dividend. Finally, it sets up linearity regression model of multi-factor founding on theory analyzing of the first chapter to explain how many factors influence extra earning. The conclusion shows that it exists negative extra earning which isn't significant zero in declaration term of new stock, but the dividend can't well explain this negative extra earning which isn't significant zero and the factors that influence extra earning are restricted to one or two explaining variable, namely dividend of per stock > earning ratio of net assets value > net assets value of per stock and so on. The conclusion doesn't support the statement that the dividends policy of the listed firms is helpful to improve the value of the listed firms.Chapter 4 is the studying conclusion and the studying limitation. The chapter generalizes the conclusion of empirical studying before, and indicates the limitation of studying.