The Empirical Research Of High Stock Dividend On The Company’s Share Price

By reading the relevant dividend policy documents, combined with dividend policy theory, we do the empirical study on the market reaction of non-cash dividend policy in multiple perspectives. We have explored market reactions during the plan announcement and ex-dividend date period. At the same time, the market reaction of non-cash dividend policy which belongs to different market segments or with different feed conversion ratio is carried out in-depth study. Since then the linear regression models were constructed in plan announcement and the ex-dividend announcement situations, factors affecting to market reaction were conducted in-depth inquiry. Finally, regulators, listed companies and investors are given a reasonable proposal respectively. The main conclusions of the paper are as follows:1) High stock dividend policy has a positive market reaction. In the period of the date of plan or ex dividend announcement, the market has a positive average cumulative abnormal return, this conclusion is consistent with previous studies.2) Market reaction is slightly different in different market segments. During the period of the plan announcement, the market reaction of Motherboard, Small board, the GEM is nearly identical; During the ex-dividend date period, the Motherboard market response is different from Small board and the GEM, movements of the latter two is closer.3) When sending share transfer ratio is higher, the market reacted strongly. This is also consistent with the phenomenon which current market increasingly interested in high turn sent.4) Linear regression models reflects, in the period of plan announcement, the market reaction with a feed conversion ratios and weighted ROE has a significantly positive correlation; in the ex-dividend date period, the market reaction with a feed conversion ratio and plate categories of virtual variable has a significant positive correlation, and has a significantly negative correlation with the share capital surplus and retained earnings per share.Overall, this study shows that it caters dividend cater theory, some fits signaling hypothesis.