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A Study On The Correlation Between Real Dividend And Cash Dividend

Posted on:2015-08-30Degree:MasterType:Thesis
Country:ChinaCandidate:J WangFull Text:PDF
GTID:2279330431477971Subject:Business management
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Since April3,2013, GXSH announced to present shareholders with black sesame dairy, many listed companies have followed after that, such as Jointown, Zqgame, HWHG, even Wuliangye and Suning Commerce Group have joined the ranks.For a time,"in-kind dividend" has become a hot topic in China’s stock market and has attracted wide attention.China’s listed companies generally give cash dividends or stock dividends to shareholders, sometimes in the form of the use of capital surplus into share capital, or rare property payment and debt payment. In-kind dividend is not clearly defined in the law.In this paper, He Jie’s definition of in-kind bonus is adopted.This paper focuses on the effects of the act to the market.In this article it will be considered as a kind of property payment, as a new form of dividends paid to study.Through the event study methodology, we select16samples of10listed companies who issued in-kind bonus and38samples that distributing cash dividends of the same companies from2007to2013. We put the dividend announcement date as the event date, calculate and analyze the average excess return (AAR) and the cumulative abnormal return (CAR)22days before and after the event day,and than make T test to different performance of stock share between in-kind bonus and cash dividend, obtain the following conclusions:(1)overall, both the in-kind bonus and cash dividends have signaling effects;(2)one month before and after the announcement, cumulative abnormal return of in-kind bonus at the significant level of5%is significantly negative, cumulative abnormal return of cash dividends at a significant level of ten percent is significantly positive, indicating that the in-kind bonus has a negative effect on the stock price and cash dividends have a positive effect on stock prices, shareholders prefer cash dividends;(3)in-kind bonus will cause the stock price to fall, reducing the cumulative abnormal return. we believe that Although the in-kind bonus can attract the attention of investors, but investors will mostly see the in-kind bonus as a marketing tool, a way to deal with inventory or gimmicks.It have a negative impact on the stock price.(4) compared with listed companies who is nearly non-payment or issued decreasing cash dividends,the listed companies who issued increasing cash dividend and newly listed companies can get obtain higher abnormal returns in the short term. This article verified the existence of signaling effect in the study of the effect of in-kind bonus on the stock price,in the on the impact of listed company’s share price,through empirical research,we research dividend policy from a new perspective, enriches the theory of dividend policy,expand the theory of factors influencing price.Meanwhile,it support corporate managers to develop a reasonable dividend help investors make investment decisions based on valid information that can be collected, help investors better understand the development of listed companies;this paper lay the foundation for our shareholders to properly measure the value of the company, to provide reference for rational investment of investors;provide recommendations for market regulators to improve the relevant laws and regulations, and promote China’s capital market to continuous improvement.
Keywords/Search Tags:Signaling Theory, Dividend Policy, in-kind bonus, Cash Dividend, Stock Share, EventStudy Methodology
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