The Impact Of The Dividend Policy Of The Chinese Listed Companies On The Stock Price:an Empirical Study

Dividend policy as one of the listed company’s core financial policies, has always been the focus of many researchers at home and abroad. Reasonable dividend policy not only serve as listed companies to establish a good corporate image, and thereby stimulate the enthusiasm of the shareholders’investment, but also can stimulate the enthusiasm of the management, in order to promote the management of listed companies to work harder in operating companies, then promote the faster development of listed companies. However, due to China’s special economic and social structure, dividend policy of listed companies in China have many urgent problems, which not only brought a lot of trouble to investors and listed companies, but also brought a number of adverse effects to the capital markets and macroeconomic environment, therefore, the dividend policy of listed companies in-depth study in line with China’s real needs.This article includes a total of four parts. The first part is the introduction, which introduces the research background and significance, summarizes the literature at home and abroad on the relationship between dividend policy and stock price, clear on the basis of this research method is that the event analysis.The second part is the underlying theory, by introducing the concept of dividends and dividend policy, outlining the history of the development of the dividend policy of listed companies in China allows us to understand the current situation of China’s listed companies dividend policy, and thus further analysis of China’s listed companies in this situation reasons, and then get the characteristics of the dividend policy of listed companies in China compared to western developed countries, and finally through explaining the relationship between the dividend policy of listed companies and stock, such as dividend irrelevance theory,"a bird in the hand" theory, tax theory, signaling theory, agency cost theory, this theories provide a theoretical basis for the empirical research of the dividend policy of listed companies in China effect on the stock price. The third part is the empirical studies of dividend policy affect stock prices of listed companies in China, this section draw on the basis of the western theory of dividend policy as well as other scholars at home and abroad research, combined with the specific situation of China’s capital market, using event study methodology, through the market model and the cumulative excess return model empirical test of China’s listed companies on the stock price, specifically, using after the split share structure reform of listed companies of A shares in Shanghai and Shenzhen300plate data as the study sample, analysis the data of dividend plan before the announcement of a five-day average excess return and the cumulative excess return rate, cash dividends and stock dividends as the two sample groups, comparative analysis of the dividend allocation of cash dividends and stock dividends, discuss different dividend policies effect on the stock prices. The result is that investors love stock dividends, stock prices rose significantly; and cash dividends are not subject to the attention of investors, resulting in the decline of stock prices. The fourth part is the conclusions and recommendations.This paper innovates in the following aspects:First, the data selection of innovation; in order to ensure that the empirical test results have a reference, the author conduct a strict and even critical choice of sample screening, so as to eliminate a number of external factors for the test results. Second, the sample selection of innovation of the year; this paper selects the data that after the completion of the split share structure reform, namely, the sample data for2006to2011.Shortcomings in this article is the event window period is relatively short, just calculate the announcement date and its plans before and after the five-day average excess return and the cumulative excess rate of return, not to extend the window period to discuss the announcement long-term market reaction.