This study considers dividends decision as a primary signalling about the future expected return of firms. When those firms which have the opportunity of investment are going to increase dividends, they will generally require such additional long capital financing as stock issues or bond issues. This can be seen as secondary signalling about the future expected return of firms. This study is chiefly concerned with the empirical study about Korean listing firms in order to find whether there are significant differences between the incentive firms which have incentive as can communicate signal and the limit firms which have no such incentives, It may be difficult to conclude that a firm`s financial decision is clearly signalling. In each test it is doubtful whether there exists practical significance because decision or explanatory power is not large, even though statistical significance can be admitted.