Research On The Problem Of Dividend Distribution Of Listed Companies In China

Dividend is one of investment returns that the company pays the shareholders from the net profit by the amount of their stocks. Dividend involves in cash dividend, stock dividend, debt dividend, property dividend etc., and other substitutes for, share repurchase. Dividend policy is that policy-making body of dividend adopts some tactics related to dividend policy which contain five of types: stable dividend policy, stable pay-out ratio policy, ladder dividend policy, residual dividend policy and regular dividend plus extras policy. The dividend policy of the listed company is influenced by many factors such as law, contracts, conditions inside the enterprises, shareholder wills, administration and supervision authorities etc.. The dividend distribution policy of the listed companies is known as one of the ten complex problems of company finance. Early in the thirties of the last century, the western economists began the study on dividend policy. There were three groups, the Left, the Right and the Center. Leftist advocated low dividend, rightist maintained high dividend and center did not think dividend policy is relevant to enterprise valuation, they were called classical theory, later on, they have developed into modern dividend theory, including residual dividend theory, clientele effect theory, ownership structure theory, agency theory, signaling theory and transaction cost theory, etc.. There are many problems in dividend distribution of listed companies in china: an obvious tendency of abusing dividend signal, dividend policy being discontinuous and unstable, a general phenomenon to distribute little and non-distribution. Dividend plan is often accompanied by capital stock expansion such as share allocation and capitalization of share premium. List company usually mistakes allocation dividend distribution, highly encloses money under the pretence of it. It is unfair to offend against principle of equal share for equal right and equal dividend. The difference of ownership structure and the scale of capital stock form the differentia of dividend distribution. The above problems caused the following elements: the abnormal stock market, the immature market, the government interference and organization investors displacement, is the main reason to fluctuate running stock market. Ownership centralized too excessively to shape the effective corporate governance structure. Enterprise ignores transform organizationalsystem work. But over emphasizes finance dividend policy if listed company is unscientific and irrational, with random and blindness. In order to pattern the behavior of dividend distribution of the listed company of our country, we should make items of law and concerned to regulations so that standardize the dividend distribution of the listed company. To perfect company's governance structure is to prompt to make rationally decision of dividend distribution policy. Separate ownership is to realize that the structure of ownership optimization. Weaken administrative interferences is to strengthen supervision. Cultivate organization investor actively is to make them a core to stabilize stock market.