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An Empirical Study On Cash Dividend Policy Of Listed Companies

Posted on:2005-12-17Degree:MasterType:Thesis
Country:ChinaCandidate:X P ZhangFull Text:PDF
GTID:2156360152968626Subject:Business management
Abstract/Summary:PDF Full Text Request
Dividend policy is one of the three major concerns in a corporation financial management. Proper dividend policy could be helpful to establish a favorable company image, encourage the investors' enthusiasm for the constant investment and build solid base for the extended and stable development of company.This dissertation briefly introduces western literature review and empirical studies about dividend policy, and tries to apply similar theory and research methods to solve dividend policy issues in China. Then, the article concludes the characteristics of listed companies' dividend policy in China since 1993.Since cash dividend becomes the initial dividend payout in china, and token dividend,abnormal dividend are highly concerned, the article's key feature is to examine factors influencing cash dividend payout, dividend signaling efficiency and other related matters. Based on the qualitative analysis and former investigations, multi-factor regression analysis is involved to check the main factor influencing dividend policy. The result shows that dividend policy of current list companies is primarily infected by following factors: company's yield per share,last year cash dividend per share, market value to yield rate, and average cash dividend payout per share in the industry. Further, the article applies Cumulative Abnormal Return (CAR) to analyze cash dividend signaling effect, and the consequence points out that there's no such effect in China. Finally, the dissertation provides some suggestions on regulating listed companies' dividend policy in China.
Keywords/Search Tags:Dividend Policy, Cash Dividend, Regression Analysis, Signaling, Cumulative Abnormal Return
PDF Full Text Request
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