Dividend Policy And Stock Price Fluctuation

This paper mainly studies the possible relationship between dividend policy and stock price volatility under the Chinese market environment,trying to find the correlation between stock price volatility and the main dividend policy(dividend yield and dividend payout ratio),and then to evaluate the company's incentive policies,Also hope that through the development of a reasonable dividend policy to reduce stock price volatility and enhance market stability.However,despite many years of empirical research,the relationship between dividend policy and stock price volatility is still different in different countries.After referring to the researches in different countries such as the United States,Britain,Australia and Malaysia,this article attempts to find out the dividends in Chinese listed companies The Relationship between Policy and Stock Price Fluctuation.To this end,the article selects all A-share companies listed on the Main Board of Shanghai and Shenzhen Stock Exchanges from 2009 to 2015 as research samples and strictly selects them(excluding financial and insurance companies;removes those companies with negative annual net assets;Remove the company missing the research variables;Remove the ST,PT shares;Excluding those who have issued both the H shares and the B shares issued;Excluding companies listed less than one year),the final wind from the database to obtain 123 relatively mature and there Continuous dividend record company data,and finally stata software for processing.In the data processing,the article first describes the stability of the data by statistic description,then conducts the correlation test of the variables after the data is stable and the test results are used to eliminate the possible multicollinearity problems.Then,using the Hausman test,Finally,the model is determined as a fixed-effect panel data regression model.In addition to the dividend yield and dividend payout ratio of the two major variables in the regression model,the paper expands the regression model by increasing the size of controlled variables firms,long-term liabilities,yield volatility and asset growth,making the model complete and persuasive.In the process of regression,dividend yield and dividend payout ratio are separately regressed,and put into the same regression model to explore the impact of the two variables on the stock price volatility.Finally,through a series of regression results and existing findings,the article concludes that there is a clear negative correlation between stock price volatility and dividend payout ratio at a significant level of 1%,which is positively correlated with the dividend yield,But the relationship is not particularly significant.In addition,dividend payout ratio also has more impact on stock price volatility than interest rate.After that,the article also discusses the status quo of China's dividend policy,explains the result to some extent,and puts forward some suggestions and suggestions for China's dividend policy.