Research on the Phenomenon of “High Stock Dividend†of Listed Companies in China

Abstract

Based on the theoretical research of “high stock dividendâ€, this paper proposes different assumptions to analyze the motivation of listed companies which issue “high stock dividendâ€. The authors use the 8993 listed companies’ data from 2012 to 2015 to conduct empirical analysis by Logit model and explore the various indicators whether affect the probability of “high stock dividendâ€. This paper concludes that the listed companies’ motivations of conducting high stock dividend are for optimal price theory and equity expansion theory, while against the price illusion theory, dividend catering theory and signal transmission theory.