Research On The Dividend Policy Of Listed Companies: Theory And Empirical Analysis

Dividend policy is one of the core content of financial management in listed companies. On the one hand, it is the extension of the company's financial and investment activities; on the other hand, appropriate dividend policy can set up good reputation for the company, arouse enthusiasm of many investor to continuous invest and acquire long and stable development opportunities and conditions.Western financial researchers presented theories explaining the dividend policy of listed companies. We can find one of these theories useful when explaining specifically dividend conduct but none of them can explain all about the dividend conduct of listed companies. To sum up the points and inaccuracies of the theories will give us profound understanding of western dividend theory, and this involves in the thesis.In China, listed companies generally have background of state-owned enterprises. Contrasted with foreign firms, listed company in China is often characterized for its investors and government structure. To sum up and explain the characteristics of listed companies' dividend conducts in Chinese stock market and to present propose to rationalize dividend conduct also involve in the thesis.Whether the dividend policy effect the price of the stock market or not, and which kind of dividend is preferred? Can listed company add its value by specifically dividend conduct? Using econometrical methods and listed companies' dividend data of 2001-2002 from Shenzhen stock market, empirical analysis is fulfilled to testify the signaling theory.In conclusion, by theories analyzing and empirical testing, the author sums up western dividend theories and characterizes listed companies' dividend conducts in China. By using mathematical model and statistical method, the author draws the conclusion that security pay-out dividend can cause abnormal revenue and cash pay-out dividend cannot. And by thorough investigation of capital structure and cost of agency of listed companies in China, the author details the influence of these factors and presents propose to rationalize the dividend conduct of listed companies.