Abnormal Returns of Stock Dividend: Evidence from China's Securities Market

This paper builds the portfolios and composite index of the cash dividend and stock dividend company, then studies the influences of the two kinds of dividend policies on returns. The empirical results show the two abnormal returns have significant difference: the investment portfolio of stock dividend policy is superior to the cash, moreover, the longer the holding periods, the more obvious the advantages. Therefore, stock dividend company is more valuable than the cash on investment.