Research On Market Effect Of Cash Dividend Declaration Of Listed Companies

Dividend policy has been one of the hot topics in corporate finance research in recent years.There are many discussions about the relationship between dividend policy and corporate value.The dividend signal theory believes that companies can convey the relevant information of business performance and development prospects to outside investors through dividend distribution,which means that the increase of dividends can cause positive market reaction.Since the beginning of the last century,western scholars have carried out a large number of theoretical and empirical studies on the market reaction caused by dividend policy.However,most of these studies focus on the developed capital market,and there are few researches on the emerging capital markets of developing countries such as China.The development of China’s capital market has only been more than 40 years,which is different from the mature capital market in many aspects.Therefore,the conclusions applicable to the mature capital market may not be applicable to the Chinese market.In addition,most of the previous studies focused on the impact of cash dividends on market response,and did not classify listed companies in different situations.Based on the above problems,this paper first describes the research background,research significance and the thesis expounds the structure and planning,and on the basis of the theoretical part,empirical part adopts event study from 2015 to 2019 listed companies cash dividends declared to study the market reaction,through calculating the excess yields AR,The average abnormal return rate(AAR)and cumulative excess return rate(CAR)study the market reaction in the ten trading days before and after the announcement of cash dividend plan,and draw the conclusion that cash dividend announcement has a positive impact on the securities market,but there are information leakage and insider trading in China’s securities market.Next using event study and group analysis,oin the basis of geographical boundaries distinguish between geographical sense of listed companies,the south and the north in the life cycle and classification standard for distinguish between growth period,mature period and decline of the listed company,the different characteristics of different market reaction of cash dividend announcement of listed companies,thus draw the conclusion:The cash dividend declaration of listed companies in south China has a more obvious positive impact;Listed companies in recession are more suitable to adopt cash dividend policy,and there is no significant difference between growing and mature listed companies.At present,the research emphasis of existing literature,the influence of the dividend to the market reaction and grouping research literature is less,the innovation point of this essay is most of previous studies is the enterprise life cycle theory,this paper studies the different life cycle of the listed company cash dividends declared different market reaction,and join the geography study group events,This has never been done before.In this paper,enriched the cash dividend declared to respond to market research,for different investors have certain guiding sense,is helpful for investors to different conditions of the listed company cash dividend declared to better understand the market reaction caused by the,thus for investment decisions,also is advantageous to the management of listed companies according to the company itself actual situation to determine whether the cash dividend,Promoting the management and development of the company has certain theoretical and practical significance.