A Research About The Relativity Of Listed Companies' Cash Dividend And Quality Of The Surplus

Recent years financial markets has been the focus on one of three big financial theories: dividend policy. Listed companies are usually willing to send a positive signal to the market which show their companies is in good situation. At this time, the best way to complete signal transmission is cash dividend. And investors also want to know the listed companies' development condition from the dividend policy to judge whether the enterprise is worth to investment. So whether cash dividend and earnings quality related becomes the focus of present discussion, the size of the cash dividend payment rate often depends on the earnings this year, so the size of the cash dividend payment rate is likely to reflect the enterprises' current earnings. Therefore, for signal transmission theory, the behavior of listed companies' cash dividend has the function of inflecting its financial condition signals to the market. Is that cash dividends of listed companies will have a good earnings quality, can investors take the situation of the cash dividends of listed companies as a reference to analysis and evaluation of the enterprise. These are for the study of cash dividend and earnings quality correlation provides realistic significance.The situation of listed companies' cash dividends is more complicated, although the cash dividend policy has been widely accepted, but many companies' cash dividend policy are not stable, weak sustainability, etc and market reactions about the cash dividend policy also have large fluctuations, this surplus quality and the relationship between the cash dividend policy becomes more interesting. So by means of empirical study could be further to explore the relationship between them, in order to evaluate earnings quality of listed companies, select the playable accrued profits as evaluation index of the earnings quality to discuss the correlation of the two coupled with dividend policy. The empirical results show that cash dividends of listed companies has a lower handling accrued profits than less cash dividends companies, it means a better quality of surplus. In addition, the continued high cash dividend and high cash dividend payment rate also reflects the higher earnings quality of listed companies. Based on this, can explain that listed companies' cash dividend policy of our country has actual meaning, the behavior of the listed company cash dividend contains certain information content to pass out of the capital market information on the quality of company surplus. In the end, put forward some suggestions for improving the quality of the listed companies' earnings and dividend policy.