Research On Signal Transmission Signal Of High Dividend Distribution Policy In GEM

The relationship between a company's dividend policy and its stock price has been of concern to scholars.Literature Review section of this paper reviews various well-kwon dividend theories from the traditional view of finance under the rational investors and efficient market hypothesis,including classical dividend theory,client effect theory,signal transmission theory and agency cost hypothesis,and then from the modern dividend policy theory,including retained earnings theory,reputation theory,attention attracting theory and investors fantasy theory.This study will take into account the stock dividend issue in China's domestic market,so we also introduce the two major hypotheses in stock dividend issue,the theory of optimal trading price range hypothesis and Dividend catering theory.Finally,describe and analyze the empirical research on dividend policy at home and abroad,in order to understand the innovation and shortcomings of the dividend policy.China's domestic securities markets are in the developing and maturing process,we may notice that many market participants have huge passion to operate on this subject.To have a more intuitive analysis of the relationship between stock price and stock dividend event,we will do some empirical studies using the event study methodology.Event study methodology uses the data before and after the incident to calculate abnormal return to show the impact of the event for the asset prices,and by t test,we can draw the conclusion.Finally,combined with the results of empirical research,the paper puts forward effective policy recommendations to the supervision and management,and puts forward reasonable suggestions for the majority of small and medium investors.