A Study on Stock Dividend of Chinese Securities Market

Based on related dividend theories, this paper uses the empirical data of Chinese securities market, constructs the sub-portfolios which consist of three samples including stock dividend, cash dividend and non-dividend and studies the return of these three types of sub-portfolios by co-integration model and Sharpe index model. The results show that the operating condition of listed companies issuing stock dividend is the best ideal, listed companies' growth decides the choice of dividend policy, stock dividend is the natural choice of listed companies with sustainable development advantages.