A Study On Dividend Policy Of Listed Company In China

Dividend policy is always the important part of the listed company's financing management. It may affect company's capital budget, capital structure and capital cost, thus influence company's operating risk, profiting ability. Also, it can affect the company's value in capital market, and influence company's stock price and shareholder's wealth distribution. In addition, it has intimate relations with investment decision and fund raising decision of listed company. Since dividend policy setting itself related to listed company's micromotion and financial market's macromotion, the standardization of dividend policy setting is not only an important condition for listed company operating normally, and decide also listed company's further development. However, in China, listed companies don't put dividend policy on important place. The decision of dividend policy is blind and malpractical. Thus the study on dividend policy of listed company in China has both theoretical and practical significances.The dissertation makes a scientific study on dividend policy of listed company in China and aims to answer the following questions: Whether should company distribute their profit? How much to distribute? What method and strategies can be use?First, the dissertation introduces several kinds of dividend methods and compares their different effects on finance situation of listed company. Second, this paper analyses and evaluates the existing theories on dividend policy. Third, the dissertation describes the characters of Chinese listed company's dividends policy and finds there is a great difference between China and western countries in corporation's operating mechanism and stock market environment. Then the paper tries to analyses the originations of these differences. On the basis of above study, the dissertation defines the goal of dividend policy of listed company and explores the company's internal and external affecting factors. Fifth, the paper explores the different demands of company's interest related parts, those are state shareholders, person shareholders, managers and debtors, and then builds a game equilibrium model to harmonize their interest relations. Sixth, the dissertation proposes a new definition that is reasonable dividend rate and explores a measurable method for it. At last, the article studies how to chose different dividend method and distribution strategies in different development stage of listed company.