Since M-M (1961) and others published the dividend irrelevance theory, numerous empirical studies have been conducted on the impact of dividend policy on shareholder wealth, and while their findings vary, they generally lean toward supporting the information effect of dividend policy. This study empirically examined the characteristics and information effects of dividend policy using cash dividend rate disclosure data and daily stock return data in the Korean securities market. Listed companies in Korea generally tend to pursue a stable dividend policy, but are influenced by external factors in determining dividend policy. Due to legal constraints on dividend policy decisions, ex-dividend adjustments are made before cash dividends are finalized, thereby impeding the formation of fair ex-dividend stock prices. In the empirical examination of the information effects of dividend policy, evidence was found supporting both the information content hypothesis of cash dividend announcements and the information content hypothesis of announcement timing, and it was observed that such information content is attributable to the signaling effect of dividend policy. Furthermore, empirical evidence was found supporting the notion that managers act to maximize stock prices rather than prioritizing their own wealth.