Analysis On The Impact Of Dividend Policy On Stock Price Of China's GEM Listed Company

Dividend policy as one of the three financial management theories of listed companies,has received extensive attention of the investors,it is not only the continuation of corporate investment and financing activities,and according to the signal transmission theory,the reasonable dividend policy can pass some signal to investors that the company is operating well and the company's future development is in good condition.This signal can establish a good image for the company,enhance investors' confidence and attract investors' enthusiasm to continued invest to the company,so as to provide the conditions for the company's long-term stable development and opportunity.In this paper,the dividend distribution is divided into three categories: cash dividend,stock dividend and mixed dividend,many domestic and foreign scholars have found that different way of dividend distribution will convey different development information of the listed companies,attract investors who have different hobbies,then cause the price's change in different directions and different degree.Then whether the dividend distribution policy of the GEM Listing Corporation is in accordance with the regularity,and whether there is a correlation between the dividend policy and the stock price of the GEM listing Corporation,how can the different dividend distribution policy lead to the change of the stock price? All these questions are needed to be discussed in this article.Since its establishment in 2009,the gem has shown distinct characteristics to the main board market in terms of dividend distribution.However,the GEM is a new capital market,the research on the dividend distribution of the listing Corporation is relatively small,most of the scholars' research have focused on the influencing factors of dividend policy,and which mostly based on the main board market.Under such a background and based on the consult of the domestic and foreign classic dividend theory and related research,we choose the emerging market as the research object in this paper,try to research and analyze the impact of dividend policy on stock price of GEM Listing Corporation.On the one hand,it is beneficial to improve the theory of the relationship between dividend policy and stock price.On the other hand,it can provide some reference for the GEM Listing Corporation and investors.In this paper,we choose the 2011-2014 annual GEM listing Corporation's related financial data as the research object,to research the impact of dividend policy on stock price from two aspects of theory and empirical analysis.First,we use the event study,to verify the correlation between dividend policy and stock price by single sample test in parameter test;Second,using logistic regression,on the basis of researching the mode of dividend distribution,we synthetically considered the internal development factors of the company,such as the size of the company,the ratio of assets and liabilities and so on,tointroduce the relevant explanatory variables and control variables to build a regression model to test the impact of dividend policy on stock price of GEM Listing Corporation.The research results verified the research hypothesis that the cash dividend and the mixed dividend have a significant positively impact on the stock price movement,but it does not support the hypothesis that stock dividends are positively related to stock prices.On the one hand,it may be due to the small sample size of the stock dividend,which affects the results of the study.On the other hand,it may be because of the irrationality of the stock market in our country which can not fully reflect the effect of the company's dividend distribution.In addition to this,the company's internal factors such as company size,solvency,profitability and the future development of the company's also have a certain impact on the stock price.Finally,according to the research results,it puts forward some relevant suggestions for the listing Corporation to make reasonable dividend policy,and for the investors to make reasonable investment.