| The distribution of the dividend is one of the three main policies in modern financial management, and it is an sensitive problem that concern with the stock company, especially the listed one as well; The policy covers the problems like the relationship between the company and stockholder; the short-term and long-term policy; the distribution of the dividend and further investment. The ultimate goal of the policy is to maximize the value of the companies, for certain messages of them, like their present situations, their development potentials, etc., which can be conveyed to the public, are the indicators of the company's financial status for investors.An appropriate dividend rate is of vital significance to both the stockholders and the companies. How to meet the need of both sides is arousing increasing attention. This paper collects related statistics on the distribution of the listed company from 1992 to 2001, analyses its present situation and seeks to perfect the policy of the distribution of the stock dividend .Lintner(1956) pioneered the study of the dividend theory with the opening of the western stock market. Miller and Modiglian's famous theory of Irrelevance on dividends marked the beginning of a brand new era of the study in this field. The theory has been developed into two major schools: classic school and contemporary school. Speaking from the point whether the market price is concerned, it also be diversified into two theories. In one of them dividend is considered not relating to the market price while in the other they are considered closely related. In both the theories, there lacks a well-balanced coordination. Up till today, people still have not reach an agreement as to the theory and the interpretation of the theory is inadequate.Generally speaking, various dividend distribution policies are being employed. As to the question which policy should be employed by a company, it should take many aspects: like the aspect of the stockholders, the aspect of the law and the aspect of the company's self-profit, into consideration. Only in this way can the demand of all sides be fully met.Nowadays, there exists a characteristic of diversity of the category of the distribution of the stock dividend. But room still exists for the improvement of the policy. On one hand, some defects. Such as too much attention was paid tostock dividend while little was paid to that of cash; few companies pay cash dividend and the sum paid is pretty small; even worse, some companies do not distribute at all, need to be attached importance to; on the other hand, there is no strict authoritative norm to be observed when distributing dividend. The rather loosen, unauthoritative norm, which alter frequently, often result in the fluctuation of the price of the stock market.Both the defects: no dividend distribution or an excessive distribution of stock dividend, are disadvantageous to the maximization of the stockholders' interest. And the distribution of stock dividend in a high percentage can devalue the future market achievement of the company.Other companies developed their policy of dividend distribution purely for the purpose of meeting the developing tendency of the price of the secondary stock market. This greatly twisted the stock price and does even serious harm to the long-term holders who are keen on the stock dividend.The stock market is generally too speculative. Many stockholders favor their profits to be paid in stock rather than in cash . And this inevitably makes those companies that distribute cash profit unpopular. Secondly, the defects in the structure of stock equity cause the company to be less competitive in making money. Finally, the ability of earning the profit by the listed company is not enough, together with the short endurance of the ability, which result hi a low profit rate in turn.Therefore, an appropriate profit-distributing policy which fits for the special condition of our company needs to be developed, so as to maximize the value of the company and simultaneou...
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