An Empirical Study Of The Information Contents Of Cash Dividends Policy

With the development of stock market and the growth of listed companiesin China, research on the listed company, including the dividend policy, isbecoming increasingly important. Since 2000, more and more companies havechosen cash as dividend, which has been the new phenomenon of stock market inChina. In order to know and appraise cash dividend policy of listed companiesmore clearly, considering the new characteristics of dividend policy of listedcompanies since 2000, the thesis has made a positive analysis on the major viewof dividend policy research --Signaling theory to verify whether cash dividendpolicy of china has message intension.Beginning with the basic theory of the dividend policy, the thesis firstlyexplains the traditional and modern dividend policy theories emphatically, andexplains the current situation about signaling hypothesis. Secondly, it makes asummary of the characteristics of the cash dividend policy, analyzes the factorsinfluence the dividend policy, and explains this on the theory and in practice.Thirdly, on the basis of the data of the securities business of Shenzhen marketand Shanghai market, it calculates the cumulative abnormal return, analyst thecash dividend policy of listed company of 2003, and draws a conclusion that thecash pay-out dividend policy can influence the securities business. Finally, anadvice is provided to the government and the listed companies.The result of positive research of the thesis indicates that cash dividendpolicy can transmit certain signal. This helps supervision department utilizesignal transmission function to strengthen the management to listed companies,and afford investors reason to make decisions according to cash dividendinformation too.