The Impact Of Dividend Policy On Stock Price Volatility

In recent years,with the continuous im provement of the market economic system,China's securities industry has experienced a long period of development from scratch,from the establishment of the market,the formation of unified supervision,structural reform,deepening development stage to the present stage of innovation and development.China's securities industry is facing great opportunities and challenges.On the one hand,institutional investors are increasingly becoming the backbone of the securities market.Institutional investors have different characteristics from individual investors.Generally speaking,institutional investors have a long time to hold stocks,which requires a stronger stability of the investment target and huge trading volume.On the other hand,China's securities market is still dominated by small and medium-sized investors,of which small and medium-sized investors are mainly individual investors.Small and medium-sized investors' understanding of the market is not limited to buy low and sell high,and pay more and more attention to long-term stable returns.Overall,the market continues to develop.Investors have a growing preference for long-term and stable earnings.As one of the important factors for investors to study the investment target,reasonable dividend d istribution policy has attracted wide attention of listed companies and investors.This paper focuses on dividend policy and stock price volatility.First,it explains the research background and explains the importance of dividend policy to the market.It extends to the relationship between dividend policy and stock price volatility.According to the research results of Chinese and Western scholars,this paper expounds the development process of dividend policy,and explains the important influence of dividend policy on stock price volatility.After that,this paper selects the dependent variable stock price volatility,the independent variable cash dividend and the dividend,analyzes the relationship between the stock price volatility and the dividend poli cy through the panel regression,and draws the conclusion that the stock price volatility is affected by the cash dividend,and the cash dividend is helpful to reduce the stock price.Volatility.However,the volatility of stock prices will not reduce volatility due to dividend payments.