Stability Of The Market Effects Of Dividend Policy Of Listed Companies In China

Dividend is one of invenstment returns that the company pays the shareholders from the profit by the amount of their stocks. The dividend policy has influenced not only about normal operations of a company, but also about development in the future, even in the normal operations of the whole financial market.According the signaling hypothesis theory, dividend policy can carry the messages of company to the market. Stability dividend policy means that company is in good instuation and can make the company keep good market features. Western companies almost take the stability dividend policy and pay cash dividend to sharholds. In our country companies pay dividend to shareholds at randomly.This thesis investigated the influence of stability dividend policy to the stock price. We chose 41 compaies thoses who payed cash dividend from 1998 to 2002 and chose another compaies who didn't payed cash dividend in this period .The conclusion of this study is that cash dividend has unsignificant reactions of the market and also the stability dividend. Stability dividend policy can't promote the value of listed company. Finally we try to find out the difference features of two group compaies and give out some advices .