Research On Information Content Of Stock Dividend In China's Listed Company

Dividend Policy is the strategy adopted by company on market to dispose rationally from the post-taxation into the profits given to the stockholders and the retained earnings. It's an extension of activities of the company to raise and invest money. What's more, viewing form it's effect on market and economy, dividend policy which is acting as a mirror of the operations and achievements of the company, may not only influence the image of the company, but also cause the fluctuation of its stock price. Regarded as one of three major policies of the financial administration of company, the dividend policy has been a great difficult problem in the financial administration, and it studied the extensive concern of the family by the domestic and international finance. In china, dividends are mostly given through cash payment and stock payment. According to signaling theory, dividend is an effective signal for company to transmit its inside information. This article studies the connation of stock dividend of china's listed companies under the guidance of the principle of signaling theory.After explaining the basic principle of signaling theory, This article studies the announcement effect and the connation of stock dividend, analysis the relationship between them. The empirical result indicates that what stock dividend transmitting is the information regards the earnings in the current and next year,but the information doesn't consistent with the information which reflected by the announcement effect. At last, based on the experimental results, the author gives some suggestions on how to improve the transfer effect of information content of stock dividend.