For investors, dividends with operating conditions of important messages, dividend increase to convey positive messages for investors, represents the expected future earnings will improve. Surplus dividend policy affect of enterprise, when corporate earnings limit for the implementation of dividend policy, would cause a company to maintain a certain level of surplus or meet some expectations and earnings management to enable enterprises to avoid negative effects of reduced dividend.
This empirical results show that patterns of dividend distribution and rendering de-cisions should count a significant negative correlation on behalf of dividend distribution of patterns in connection with surplus management. When when they award should count more, enterprises are more likely to issue stock dividend, representing a large range of surplus management of enterprise more inclined to issue stock dividend.
This further analysis of the patterns of dividend distribution will also affect will-ingness to invest. Empirical results show that benefits between this ratio and dividend distribution patterns for negative correlation, but not notable. Possible reasons for this result is that investors do not know whether enterprise distribution of dividend for cases arising out of earnings management, resulting in not notable. Investors are likely to for business whether in the case of distribution of dividends of surplus management prac-tices are not known.
