The Research On The Dividend Policy Of Listed Firm In China

Dividend policy of listed company is a key part in maximizing company value, and it is also an important way for investor to obtain investment repayment. Since American financial analyst Miller and economist Modigliani published paper in 1961 named "Dividend Policy, Growth, and the Valuation of Shares" in which the viewpoint dividend unrelated to corporation value first appeared, lots of western scholars have studied dividend policy from different standpoints with different methods and have and put forward different theories, such as signaling theory and agency theory. Scholar of China studied from them and obtained certain achievement on the basis of Chinese situation. In the first part, the theories of Western and Chinese are briefly introduced. The dividend style, dividend form and reasons are presented in the second part. The situation of dividend in China and why is it are analyzed in the third part. The forth part is the main body of the article. The signal transmit theory of dividend policy believes dividend is a kind of effective tool that transmits internal information of listed companies. However the security market of our country has stage characteristic and different from the western mature market. This paper makes studies on this subject by using empirical research method indicate that- Now, on the security market of our country, cash dividend can not become effective signal transmit tool, can not arouse the stock price go up and also investor can not receive abnormal return from it.