The Influencing Factors Of Dividend Policy And The Correlation Between Dividend Policy And Stock Price

The dividend policy,which links the production,operation investment and inancing activities of enterprises,is the final step in the distribution of enterprise value.For investors,the distribution of dividends is a way to obtain stable returns and it is also a direct signal to obtain fundamental information about the company.Although the dividend policy of listed companies in China is constantly improving,there are still some problems.For example,there are still some listed companies that do not pay dividends.The phenomenon that companies do not pay dividends will prompt some investors to chang hands frequently in the short-term in order to make a profit.This will expose investors to the risk of irrational stock price volatility caused by "hype",which is not conducive to the construction of rational market.At present,the concept of value investment is prevalent in the market,so the analysis of the market's acceptance of dividend information can provide a basis for judgment on whether the market is rational.In this paper,we firstly describe the current status of China's A stock market dividend policy by summarizing the documents issued by the China Securities Regulatory Commission for the distribution of dividends in the past 20 years,and then counting the proportion of companies that choose dividends in listed companies.Finally we analyze the reasons.After that,we launched an empirical study on the dividend policy of listed companies.The analysis include two parts,the influencing factors,especially the fundamental indicators,of the dividend policy and the correlation between dividend policy and stock price volatility.In the analysis of the factors affecting the dividend policy,we conducted a regression analysis of 475 data in 2016 and 2017 through principal component analysis,multiple linear regression and stepwise regression.The results show that cash dividends contain amount of information,and the cash dividend policy of listed companies is closely related to the company's profitability,growth and corporate decision-making.And the cash flow,asset turnover,equity structure and continuity of dividend policy will also have an impact on the company's cash dividend policy.In the empirical study of the correlation between dividend policy and stock price volatility,we use the dynamic panel data regression method to return a total of 858 data of A-share listed companies in the decade of 2008-2017.After that,we split the time period and compare the regression results of the segment data.In the end,we conclude that stock dividends and cash dividends are significantly correlated with stock price volatility,that is,cash dividends can be used to stabilize the stock price.Compared with previous studies,the innovations of this paper may be as follows:First,we select both the dynamic panel data regression and the static panel data regression as the research method.Second,the time period of the study sample was split and the results were compared.This can reduce the errors caused by economic cycle changes and the policy changes.What needs to be studied in the future is how to better handle data when the data can only be obtained once every six months or one year.How to get enough data in a short period of time is worth thinking about.According to the research results of this paper,the cash dividend policy contains the company's fundamental information and can play a role in stabilizing the stock price.Therefore,it is beneficial to improve the investor return mechanism for the healthy development of the A-share market.