Research On The Effect Of Stock Liquidity On Cash Dividend

The stock market plays an important and pivotal role in economic development.A healthy market environment lays the foundation for stock trading.In the field of corporate finance research,stock liquidity and cash dividends have always been hot issues.In general,liquidity is a measure of the quality of the stock response indicators,listed companies to determine the liquidity of investors loyalty,and use the liquidity to achieve the desired goal,good liquidity is a stabilizing stock market;safeguard the interests of investors regulatory authorities to develop policy indicators.Cash dividend is a bond that closely connects listed companies and investors,listed companies through the form of cash dividends to repay investor injection of funds,investors receive cash dividends through cash dividends.Clearly,the relationship between stock liquidity and cash dividend has opened a new brand perspective for listed companies,investors and regulators,correctly recognize the impact of stock liquidity on cash dividends,whether listed companies enhance their own value,investors to achieve the desired investment objectives,to create a good stock market operating environment,as well as the regulatory authorities to develop relevant policies have important practical significance.This article selects A-share listed companies from 2006 to 2015 as a sample,the first stock liquidity and cash dividends from the principle of establishing contact,then,it analyzes the characteristics of the stock market in our country and supposes that the cash dividends of listed companies in our country take the risk of compensating investors for their low liquidity,similarly,investors see cash dividends as a substitute for low liquidity.After empirical study found that stock liquidity and cash dividend was significantly negatively correlated,that is,the stock market in our country is generally of high liquidity and investors prefer short-term speculation.Resulting in stock liquidity and cash dividends each alternative.Finally,this article analyzes the conclusions of the study and puts forward countermeasures and suggestions for listed companies,investors and regulators according to the conclusion.