Analysis Of The Correlation Between Dividend Policy And Stock Price Volatility Of China’s Listed Companies

China’s GEM market was established in October 2009 30,after several years of rapid development,the GEM listed companies from both the total number of listed companies or the total market value of the market has been greatly improved.The domestic and foreign research on dividend policy and stock price volatility are mostly based on the motherboard market,the GEM market relative to the particularity of the motherboard market,this paper studies the correlation of dividend policy of listed companies and stock price volatility in the GEM market,provide a reference to develop to the GEM listed companies dividend policy.In this paper,the theoretical research and empirical research are combined to study whether the company’s dividend policy is related to the volatility of the stock price and how relevant.The empirical part,select the part of the GEM listed companies as a sample,the gem was established late,so choose at the beginning of 2012 companies listed on GEM as the research sample,this study selects five years data from 2012 to 2016.First of all,we study the correlation between different dividend policies and stock price volatility,mainly focusing on cash dividend policy and stock dividend policy.Secondly,the group is divided into groups based on different dividend policies,we make a further study.Through theoretical and empirical research this paper draws the following conclusions:(1)the GEM listed company’s dividend policy has correlation with the stock price volatility,whether cash dividend or stock dividend and stock price volatility has a significant correlation.(2)in the dividend policy of the listed companies in the GEM market,the cash dividend is significantly negatively correlated with the stock price volatility.(3)GEM listed companies cash dividend can suppress the irrational stock price fluctuations,the cash dividend will promote the company stock price volatility and the fundamentals of information communication is significant,and the company not to pay cash dividend will lead to irrational stock price volatility is more,the company’s share price volatility and fundamentals information,the intrinsic value of the company is not related.This paper mainly includes five parts,the first chapter is an introduction,describes the research background,significance and literature review,the main research contents,research methods and the basic framework,then,introduces the relative shortage and innovation of this paper.The second chapter: related theoretical analysis,this paper explains the related concepts and dividend theory.The third chapter analyzes the characteristics and current situation of dividend policy of Listed Companies in China’s gem.The four chapter is theempirical process used in this paper is the research methods of multiple linear regression,the relationship between dividend policy and stock price volatility empirical test of GEM listed companies,dividend policy has significant influence on the stock price fluctuation and correlation.The fifth chapter: conclusion and enlightenment,through a variety of studies to draw the conclusions and inspiration.