Research on the Impact of Cash Dividends of China's Small and Medium-sized Listed Companies on Stock Price

Abstract

In recent years, there have been more and more companies distributing cash dividends in the A-share market. Most of the research on the level of cash dividend payment has studied the entire A-share market with a sample of CSI 300. This paper takes the relevant data of CSI 500 listed company from 2015 to 2017 as the research sample, and uses the event research method to study the impact of the cash dividend distribution level of China's small and medium-sized listed companies on the stock price from a short-term perspective. The research shows that the cash dividend policy has a signal transmission effect; however, it is not the higher the dividend rate, the better the impact on stock price. The dividend rate of more than 3% has the best and positive impact on stock price, the dividend rate of less than 1% is in the middle, and the dividend rate of 1% - 3% is the worst performance, which has a negative impact on stock price.