Abstract
Dividend policy is the one of the key point of company's financial management。Dividend Signal theory states that the dividend policy can tell the information about the company’s future profit. But in China, the listed companies’ dividend policy is not stable, which leads the difference between the usage of the Dividend Signal theory in Western countries and in China. This article demonstrate the usage of the signal theory in China through some Statistic software, then get the conclusion that the change of dividend can not tell the company’s future information, it just has relationship with the company’ profit at that year.
Key words: listed company, dividend policy, signal theory
