An Event Study On The Security Market Reaction To The Stock Dividend Announcement And Next Year Sale Budget

Information disclosure is the basis of the operation of securities market, the Market Reaction issue according to the different information disclosure, is becoming a hot spot of theory and empirical research. The domestic and international stock market information disclosure, research shows that, the decision of investors in the market depends largely on the listing Corporation information disclosure. The annual report is the main channel of the company operating the listing Corporation transfer, management, financial performance to investors and the market stakeholders. All aspects of the information disclosure of the annual report of the listing Corporation include accounting information, disclosure, not only need dividend scheme, some companies also chose to disclose information in future annual operating budget. These two kinds of information from the different angle to outside investors transfer the listing Corporation management to the company’s future annual performance expectations, there is a certain value of analysis. This information is used by the market investors to judge objectively the prospects of the company, the foundation to make reasonable investment decision. In this paper, signal theory and agency theory is discussed based on the market for delivery to dividend plans announcement and operating budget information disclosure market reaction signals at the same time. Because these two types of information are in a certain degree the transmission company about the future growth of information, this paper mainly analyzes the significant response they arrived at the market. However, when sent to a dividend announcement as "good" and the operating budget as "bad", the main market respond strongly to send to dividend announcements, produce higher positive cumulative abnormal returns, after the market began to influenced by the operating budget of bad news,the positive cumulative rate of return greatly weaken.