The Study Of The Impact On High Stock Dividends Policy To Stock Price And The Reason Of High Stock Dividends Policy

High stock dividends are always hot news in our stock market. Both in academia and in practice we are all concerned on the excess earnings of high stock dividends.The market investors are concerned about the phenomenon of the excess earnings,while the scholar also concerned on the relationship between the dividend policy and the corporate’s market value. Since 1960 s, the dividend policy theory grows quickly,there has been many famous theories like MM theory, behavioral finance theory, and many other dividend related theories. High stock dividends are along with Chinese characteristics, many people do not know the really high stock dividends, sometimes it’s just like a mystery.The article selects 276 publicly traded companies of two years as the research sample size, among the sample, in 2013,we choose 13 companies on the main-board,58 companies on the SME board, 49 companies on the GEM board, in 2014,we choose 30 companies on the main-board, 63 companies on the SME board, 63 companies on the GEM board. Firstly we begin to prepare general study of the two years. Secondly, we differentiate separate research of the two years to find the difference of excess earnings in the bull and bear markets. Thirdly, in order to do the detailed research, we try to do some research to find the difference excess earnings of the main-board, SME board and the GEM board. In addition, we differentiate the sample in different dividends, for example the one that above 10 shares and under 15 shares as one sample, the one that above 15 shares as another sample, because of this classification, we can find the difference of the excess earnings in different circumstances.Through the research, we finally come to the following conclusion: Firstly, the excess earnings are really exists on the notice date, that is to say, the announcements effect is a fact. Secondly, in bull market the excess earnings is higher than that in bear market. Thirdly, there are no significant difference of excess earnings on main-board,GEM board and SME board, relatively speaking, SME board is easy to obtain excess earnings. Lastly, the high given shares sample’s excess earnings is higher than the low given shares. We also test some western classical theories in our stock market, we find that the dividend signaling hypothesis is not useful in our market, we support the equity expansion theory and the optimal price range theory. we also find that reserved funds of per share is the necessary and sufficient condition for high stock dividends,but the undistributed profit of per share is necessary but not sufficient condition for high stock dividends the company who has taken high stock dividends in the last three years is easier to take high stock dividends again.In sum, through the total research of the high stock dividends, we hope that people can have little understanding of the high stock dividends excess earnings and understand some theory of high stock dividends. On the last part of the paper, we give some suggestions on the high stock dividends based on the view of the investor, listed company and regulators.