Research On The Settings Of Adjusted Stock Price Based On Dividend Reinvestment And Its Relevant Empirical Study

The return on stock investment is a combination of capital gain and income.As a phased compound interest calculation,the capital gain is calculated to the final stage of the lock-in phase.However,there is a certain bias in the processing of income in the traditional income calculation.Equity dividend income is a kind of income which can be used to supplement stock investment or risk-free interest rate investment according to individual preferences,which has a significant impact on the final revenue calculation and even the stock recovery right calculation.With the tightening of supervision on the A-share market,the demand for return on dividends of listed companies has increased,and a large number of high-priority dividend-paying listed companies have emerged in the market.What is the overall return on investment compared with listed companies with low dividends? This paper conducts theoretical and empirical research.Firstly,based on the review of domestic and foreign related literatures,this article makes descriptive statistics on the dividend theory,domestic related policies and the status of dividend payment of listed companies since 2007.It is found that there is no inevitable relationship between the proportion of dividends and return on investment.Secondly,through theoretical analysis,it is inferred that the traditional method of exdividend and rehabilitation of stocks is unreasonable,and through the reasonable assumptions before and after the ex-dividend of stocks and the total return on stock investment are recalculated.The dividend reinvestment income is introduced,ie,the project's internal rate of return(IRR)and external rate of return(ERR)are used to calculate the reinvested earnings of the stock,and the relative real adjusted stock price is obtained.After analyzing and calculating the stock ex-dividend recovery right price,the company uses the internal rate of return that considers dividend reinvestment to reflect the stock returns and uses the dividend yield to reflect the company's dividend payment level.Take the 2014-2016 data of some A-share market companies as a sample.The correlation between internal rate of return and dividend yield was demonstrated.It was found that only when the dividend yield exceeds a certain threshold,the stock yield is positively related to the dividend yield,which means that the stock yield of low dividend yield is more complex.Factors affect.Finally,on the basis of the previous research on the method of stock price restoration,the dividend yield and stock returns,relevant policies and recommendations are proposed.The relationship between the payment of cash dividends and stock returns found in this study has certain reference significance for the listed company how to formulate a cash dividend policy and investors to select appropriate investment targets.