Abstract

Based on the basic premise and assumption of building a multiple linear regression model and the correlation theory between corporate dividend policy and stock price, this paper adopts the multiple linear regression method of cross-section data to analyze the correlation between corporate dividend policy and stock price of 1458 enterprises from Choice financial terminal after strictly eliminating outliers. It is concluded that the significant positive correlation between dividend per share and stock price is stronger than that between fundamental indicators such as company total market value, return on equity, turnover rate of trading indicators and dividend distribution ratio and stock price, respectively. It is concluded that dividend distribution ratio is helpful to stabilize stock price fluctuations and improve investor return mechanism is beneficial to the healthy development of A-share market.

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