Keywords
Stock pricing
A-share market
Macroeconomics
Industry differences
Submitted : 2025-08-13
Accepted : 2025-08-28
Published : 2025-09-12
Abstract
This study selected 45 A-share listed companies that have paid dividends for five consecutive years from 2019 to 2024, with an average dividend yield of at least 3%, as the sample. Using a panel data model, the effect of the cash dividend ratio on stock pricing was analyzed. The empirical results indicated a significant positive relationship between the cash dividend ratio and stock price. Furthermore, stocks with high dividend payouts demonstrated greater resilience during macroeconomic downturns, while notable differences were observed across industries. These findings provide a theoretical foundation for investors in making informed decisions and offer practical guidance for listed companies in formulating effective dividend policies.
References
Lintner J, 1956, Distribution of Incomes of Corporations Among Dividends, Retained Earnings, and Taxes. American Economic Review, 46(2): 97–113.
Pettit R R, 1972, Dividend Announcements, Security Performance, and Capital Market Efficiency. Journal of Finance, 27(5): 993–1007.
Chen X, Chen D, Shi X, 2003, Corporate Governance and Cash Dividend: A Case Study of Foshan Lighting. Management World, (8): 118–126 + 151–154.
Wei G, 1998, An Empirical Study on the Dividend Distribution of Chinese Listed Companies. Economic Research Journal, 1998(6): 30–36.
Yang B, Nian J, 2022, Journal of Guangxi University of Finance and Economics. Journal of Guangxi University of Finance and Economics, (2): 74–91.
Li C, Wei Z, Wu S, et al., 2010, A Study on the Market Reaction of Semi-Compulsory Dividend Policy. Economic Research Journal, 2010(3): 144–155.
Yu Q, 2001, Market Efficiency and Dividend Policy. Journal of Financial Research, 2001(2): 23–30.
Yu C, Liu L, 2016, The Big Four Banks’ Reduction of Dividend Ratio Attracts Attention. The Banker, 2016(5): 74–76 + 7.
Wang H, 2020, Industry Differences and Dividend Effect. Accounting Research, 2020(8): 56-62.
Xie H, Li F, 2017, Regulatory Policy and Stickiness of Cash Dividend: Empirical Evidence from Chinese Listed Companies. Securities Market Herald, 2017(2): 28–36.
Frankel R, Lee C, 1998, Accounting Valuation, Market Expectation, and Cross-Sectional Stock Returns. Journal of Accounting and Economics, 25(3): 283–319.
Liu R, Han J, 2010, Economic Research Journal. Economic Research Journal, (12): 78–85
Song F, Jiang Q, Gao F, 2010, The Impact of Cash Dividend on Stock Return Volatility and Correlation of Fundamental Information. Journal of Financial Research, 2010(10): 103–116.
Yang B, Chen L, 2019, Construction and Test of Cash Dividend Continuity Index for Chinese Listed Companies. Research of Financial Theory, 2019(6): 78–87.
Zou J, Feng B, 2022, Impact of Cash Dividend Distribution on Stock Price of Chinese Commercial Banks: Based on the Data Analysis of A-Share Large Listed Banks. China Agricultural Accounting, 2022(2): 41–42.
Gordon M, 1962, The Savings Investment and Valuation of a Corporation. Review of Economics and Statistics, 44(1): 37–51.