Research On Signaling Hypothesis Of Cash Dividend In The Background Of The Split Share Structure Reform

It is claimed that, in the condition of dissymmetry of information, cash dividend is one of the most effective signal model when transferring the inner information to the outside by the company. However, the theory of dividend signal transmit which is effective in the western capital market is not effective in the capital market of China due to the split share structure.In June, 2005, the split share structure reform started, which finished in the end of 2006. In this environment, how could the reform affect the effect of the cash dividend signal transmit? Could the effect of the cash dividend signal transmit be more effective?In order to answer these questions, combining the method of academic and demonstrative, this article researches the effect of the dividend signal transmit in the background of the split share structure reform. First, this article expatiates the effect of the split share structure and the split share structure reform, and analyzes the feasibility of dividend signal transmit. On top of it, this article compares the differences of the cash dividend policy before and after the reform and finds that the cash dividend policy is more rational. On the base of it, using the event analytical method and the regression analytical method, this article researches the effect of the cash dividend signal transmit and finds that in China's capital market there is not the effect of the cash dividend signal transmit which exists in western capital market. Therefore, after the the split share structure reform, we should strengthen the supervisee of policy and correct concept of investment in order to consummate the securities business of our country further.