Research Of The Cash Dividend Policy Of Listed Companies In China From The Perspective Of Finance Behavior

The traditional theory of finance is centered on effective market theory,which contains two prerequisites——rational person hypothesis and effective arbitrage hypothesis.The earliest theory of dividend policy is based on effective market theory.But the "rational person" hypothesis of traditional financial theory does not exist in real life.People have different emotions and preferences,these individual characteristics of the factors will have an impact on people's cognitive processes,making people show a variety of cognitive bias and irrational behavior.These irrational behaviors have a direct and important influence on the decision-making line of the market participants.Therefore,this paper systematically studies the impact of irrationality of investors and managers on the cash dividend of listed companies in China from the perspective of corporate finance.Based on the data of A-share listed companies from 2010 to 2013,this paper studies the relationship between investor sentiment,manager's overconfidence and cash dividend by using multiple linear regression analysis.The main conclusions of this paper are as follows:1.Investor sentiment will cause the stock price to deviate from its real value.When the investor's mood makes the stock price rise,the rational manager will take the way of external financing,and then give out more cash dividend.2.Overconfident managers will over-invest in over-estimating the probability of success,and they will think that the company's stock price is undervalued,so it will raise funds for the project by reducing cash dividends.3.Investor emotions and managers' overconfidence have a common impact on cash dividends.Increased investor sentiment will strengthen the degree of over-confidence of managers,and thus reduce the issuance of cash dividends to raise funds for over-investment.Empirical analysis shows that the combined effect of investor sentiment and managerial overconfidence can have a negative impact on cash dividends.