Empirical Analysis On Cash Dividend's Signal Effect Of Non-state Owned Listed Companies

According Dividend Signal Theory, a company may use dividends to the release of information to investors the company's profitability, reducing the information asymmetry between investors and managers, so that prices reflect true value. Previous studies have also found that the dividend can cut costs and ease the agency problem between shareholders and managers. In particular, the cash dividend has been become the main form of dividend distribution of listed companies, and symbolic allocation, vicious faction now become the issue has been the focus of attention of all.The focus of this paper is to research the signal effects which influence Non-state owned listed companies'dividend policy thoroughly. Aiming at the widespread view that security authorities should inter interference the dividends policy of listed companies, this paper analyzed the present study on the market reaction to the dividends policy of listed companies. Expelling the interference of some data, we use regression method to study the Signal effect of cash dividend policy of Chinese Non-state owned listed companies.The research of this paper shows: Cash dividend is a result of the system gradual progress that the policy of the dividend is developed into gradually by stock dividend. Under the unripe capital market condition, because the investor does not have dividend relatively strong faith to company value of cash dividends, cash become and transmit value the signals of information and participate in each side action in the course of developing as capital market by dividend, a gradual one make market embody company value that come out have to dividend policy, cash dividend can become the tool of the effective expression private information of the company.