Study On The Relationship Between Stock Dividend Of The Listed Companies And Their Financial Performance

After development of 20 years, Chinese stock market has gradually grown maturity. But because of Chinese special national conditions, the stock market of China also makes branded impressed Chinese characteristics. As one of the important financial decisions, Dividend policy of listed company brings a significant impact on the listed company. While in China, the performance of dividend policy has always been lack of stability and continuity, which made investors can't have a correct judgment on company performances from the dividend policy, even confused investor, and then make irrational investment. Currently, the theory and practice of dividend policy is fielded in cash dividend, while the stock dividend, as another form of dividend, is also a hot issue of the market. Especially high sends and turns keep high heat, making many investors scramble for it. But the investment gained different results, someone obtained excess earnings, while the others had severe losses, or even be lockup. So the relationship between stock dividend and listed company performance, financial performance has become a concerned issue in recent years.Thus this paper firstly introduced the concept of stock dividend, and then systematically reviewed the stock dividend theory, including stock dividend market effect, influence factor of stock dividend, and the related empirical test. Secondly, this paper has descriptive statistics on stock dividend distribution of the listed companies in China, and then summarized the characteristics of dividend distribution, especially stock dividend distribution. It makes investors have a perceptual and clear recognition on stock dividend distribution in China, and help investors make reasonable investment. Finally, the key part of this paper is to make multiple regression analysis on stock dividend distribution of listed companies in China from 2007 to 2009, and then analyzes the relationship between stock dividend and the company's financial performance. The conclusion of empirical analysis is that stock dividend of the listed company and its financial performance indicators such as net assets yield have a positive correlation, which provides a theoretical basis for the supervision of the listed company and provides technical support for investors. At last the writer explores the profound theoretical connotation of the conclusion, and puts forward some suggestions and measures to our current dividend policy problems.