Signaling Role Of Dividend Policy Of Listed Companies

Being one of the three key questions of corporate finance, dividend policy is a field that the American experts and corporate managers have paid attention to. In all genres of Dividend Policy theory, the Signaling of Divided Policy is the most perfect. On base of this theory, Dividend Policy is better than Accounting Profits for the signaling the comparatively real value of company to us. But in China, for the immature of Securities Market and imperfection of the running machinery, Dividend Policy Theory to China Listed Companies hasn't been paid attention to. Therefore, it's some meaning to research the Dividend Policy theory's appliance to China Securities Market.In this paper, I give four chapters. In Chapter One, I define the Dividend Policy at first. Then I elucidate the choice of four kind of Dividend Policy and three kind of pay-out of Dividend. In the end, I express especially the relation of the Dividend Policy and the Patent Earning. In the Chapter Tow, I give a review on the genre of Dividend Policy including the classical and the modern, especially Signaling Theory. In the Chapter Three, I elucidate the actuality of Dividend Policy of the China Listed Companies and factors of influence on it. In the last Chapter, I ratiocinate to a Signaling Model. Then I make empirical analysis on base of the model by using the last four years data of the Shenzhen Securities Market. From the empirical analysis, I can give a conclusion that path of the pay-out of the dividend easy changes and the Dividend Policy Signals the information of the Patent Earning at some degree.