Empirical Research On The Dividend Signaling Effect Of Listed Companies

Dividend policy is one of the three financial management decisions of listed companies. It is cared for by investors and market as an assignment of business income, and is very important to the financial operation of the companies. The signal transmit theory of dividend policy believes dividend distribution can be a kind of effective tool that transmits internal information of listed companies because of asymmetric information and imperfect market. The public company conveys information about its condition and prospect to the market by selecting the best dividend payment in order to balance the information of managers and investors. So investors can estimate a corporation's quality. For the immaturity of securities market and imperfection of the running machinery in China, dividend policy to Chinese listed companies hasn't been paid attention to. Therefore it's some meaning to research the dividend signal theory's applying to China Securities Market.The paper will be described in four parts. The chapter one is a preface, it mainly reviews foreign dividend theories and the classical literatures concerning the dividend policy of China's listed firms present stage, to provide theory foundation for the empirical study of the signal of dividends policy of China's listed firm.The second part is an analysis on the dividend conditions of listed firms in China. We find that cash dividend policy is mostly widely used, and the average dividend-payout ratio is high, the supervision on dividend policy of China Securities Regulation Committee is effective. But at the same time there are also some problems such as lots of listed firms inclined not to pay dividend, baleful cash dividend distribution, irregular dividend distribution, etc. In addition, there is an analysis on the sakes that result in these problems.The chapter three and the chapter four select listed companies from Shanghai and Shenzhen stock market since the year of 2000 as the studying object to test the signal of dividend policy in China. The chapter three mainly adopts event study methodology to test the influence of assigning cash dividend or not and the influence of increasing or decreasing the cash dividend to the stock price. The result indicates that on the securities market of our country, cash dividend can become effective signal transmit tool, but the stock price of the day of dividend pronouncement will go down.The chapter four mainly adopts analysis of variance and regression analysis to...