The Empirical Research On Dividend Policy And Stock Price Synchronicity Of Small Board Of Listed Companies

Dividend policy as the core of the company's financial management, and how to properly develop the company's dividend policy is important and effective means to ensure that investment and financing and other economic activities are continued effective.Small plates as multi-level capital market system in a distinctive, irreplaceable level of independence, its listed company's dividend policy, will deliver the company's fundamentals of information, impact on the stock price synchronicity.By researching the relevant theory and combing literature,this article defines and summarizes the dividend policy and stock price synchronicity of related concepts,and it's study sample is the small plates of listed companies from 2006 to 2013,then, it analyses the impact of dividend policy on stock price synchronicity using empirical methods, both from the dividend policy continuity and dividend payment.The empirical results show that: (1)Continuous and stable dividend policy can effectively reduce the stock price synchronicity, but discontinuous dividend policy has no significant effect on the stock price synchronicity.This illustrates the continuous and stable dividends, enabling investors to directly share the company's net profit and achieve the investment objective, ultimately, return on investment.Moreover, the continuous and stable dividend policy can be suppressed investors's excessive speculation to some extent and will help guide investors pay more attention to the company's fundamentals information,thus makes share price contains more information on the company's qualities, and ultimately to reduce the stock price synchronicity.(2)Cash dividends and stock dividends could reduce stock price synchronicity, and the impact of cash dividends on the stock price synchronicity more significant, indicating that the cash dividends and stock dividends can pass information on the company's qualities to the outside,, the last being gradually absorbed by the company's share price, which reduces the stock price synchronicity. Meanwhile, the paper got the following revelation: (1)Long-term stable dividend policy conveys signal of healthy development.. Therefore, executives of listed companies should pay attention to the reasons for the company's stock price changes due to differences in dividend policy.(2)Investors should pay attention to the phenomenon of stock price changes due to differences in dividend policy, and thus provide a basis for their investment. (3)Regulatory authorities of securities market should pay attention to the interaction between dividend policy and stock price synchronicity,and should actively develop appropriate management regulations to guide listed companies to form a long-term stable dividend policy and guide investors from "short-term speculative" to "long-term value investing." Further promote the sustainable and healthy development of China's stock market and give full play to the securities market's role of "barometer".