An Empirical Analysis on the Management Strategy of the Growth in Dividend Payout Signal Transmission Based on Event Study Methodology

Abstract

This paper applies event study methodology to test and verify the effect of sustainable growth in cash dividend information transmission via stock market according to information transfer theory. The research results show that, Chinese investors pay no attention to the rational financial strategy for the management of sustainable growth of listed companies and cash dividend information cannot convey the sustainable growth of listed companies via stock market.
Key words: Cash dividend; Sustainable growth; Strategy; Research