The relations between dividend policy and firm value is a puzzle. The purpose of this study is to find the impact of initial dividend announcement of new listed firms on shareholders. The market model is used to examine the abnormal returns when the initial cash dividends and stock dividends are announced by the new listed firms. Also, the abnormal returns are analyzed by using a cross-sectional regression model. Moreover, 132 institutional investors are surveyed about the influence of the dividend policy of invested firms to their investment decisions. The results demonstrate a positive stock-price reaction to the initial announcement of dividend of the new listed firms. And the announcement of stock dividends leads more significant effect than cash dividends. It also explains why institutional investors pay more attention to the stock dividends of invested firms . In addition, the cross-sectional regression model shows that all the variables cannot significantly explain the abnormal returns. The information content hypothesis also can't get a consistent conclusion.