An Empirical Analysis Of Cash Dividend Signal Of China's Listed Companies

This paper is on the background of weak signal of listed company's cash dividend to China's capital market, 2003-2005 cash dividend distribution to listed companies for the study, to research and test the reason of weak cash dividend market response on the investor side. From the point of investors, Investors expected from the non-rational psychological and speculative analysis of the impact of a listed company's cash dividend signals. The empirical results show that: As expected by many investors and investor speculation driven by irrational factors interference, Cash Dividend makes investors overlook the role of signal transduction. Only when there are changes in the external environment, such as macroeconomic policy, which will reflect the role of Cash Dividend signal. Therefore, this should further improve the capital market mechanisms to reduce the non-rational behavior of investors, thereby protecting the interests of small investors, and promote the healthy and steady development of the capital market.