Research Of Dividend Policy Based On Corporate Governance

The article briefly reviews the western theory of dividend policy, and analyzes its limitation. After pondering on the theory, it argues that the state of corporate governance is of important influence upon the dividend policy. A model is developed to generally analyze the intrinsic relationship between corporate governance and dividend policy. Four kinds of typical agency problems in present-day corporation are related with dividend policy in the model. Then the author concludes that dividend policy is both financial problem and corporate governance problem, and it is a game equilibrium of the given governance state. To test the conclusion, the state of dividend policies and difference between them in American , Japanese and Chinese stock market are interpreted from the point of corporate governance. Aiming at the state of dividend policy in our country's stock market, the article indicates that the crucial point is the mechanism of corporate governance, and it also brings forward some related advice.