Catering Incentives Of Stock Dividend Policy

In Chinese stock market,investors often regard stock dividend distribution of listed companies as a “Good News”.Market participants pay great attention to "Large Stock Dividends",which gives birth to the so-called "Large Stock Dividends" phenomenon.Combining with the institutional background and current development of Chinese capital market,this paper is devoted to studying the incentive for listed companies to issue stock dividends,further identifying and analyzing different types of stock dividends.This article selects the listed company dating from 2000 to 2016 as the full sample,applying Logit regression model and multiple linear regression model to carry out empirical test.On the basis of the full sample regression,three sample tests were conducted to distinguish the ordinary dividend group from the "Large Stock Dividends" group,the Main Board dividend group from the Growth Enterprise Board dividend group,the ordinary dividend distributing ability group from the high dividend distributing ability group.Our research has the following findings:(1)The more stronger investor's irrational preference for stock dividends,the more likely listed companies will issue stock dividends to cater to the needs of investors.The ratio of delivery is higher as well.At the same time,company's fundamental factors are important references for making decisions.(2)Compared with ordinary dividend ratio companies,the "Large Stock Dividends" companies cater more to the irrational preference of investors.Their dividend behavior take irrational preferences of investors more into account without company fundamental factors.(3)Compared with the Main Board dividend company,the Growth Enterprise Board dividend companies cater more to the irrational preference of investors.Their dividend behavior take irrational preferences of investors into consideration instead of company fundamental factors.(4)Companies with high dividend distributing ability have a stronger incentive to cater to the irrational preference.However,their distributing ability has no significant effect on their dividend distributing behavior.The dividend distributing behavior of companies with low distributing ability is significantly affected by their distributing ability.However,its impact is far less than the irrational preferences of investors.This article can help investors better understand the nature of stock dividends,rationally participating in investment activities.At the same time,this article can provide theoretical basis for regulatory authorities to formulate policies.