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Empirical Research On The Dividend Policy Of Chinese Listed Corporations

Posted on:2006-01-23Degree:MasterType:Thesis
Country:ChinaCandidate:L F ZhangFull Text:PDF
GTID:2156360152989453Subject:Business management
Abstract/Summary:PDF Full Text Request
As one of the three important policies of financial management of listed corporations, dividend policy is always studied by western finance. Recently, scholars have conducted a lot of theoretical studies and empirical analyses, and put forward various theories with different ideas. Are these theories suited to China? What's the difference between Chinese dividend policy and western's? Through empirical research on the relationship between dividend policy, company's earning and capital structure, this paper tries to explain the dividend policy of listed corporations in China. Signaling theory and agency theory are two main theories to explain the nature of dividend policy. For signaling theory, dividend can signal company's future earnings to investors effectively. However, agency theory thought dividend policy can solve the agency problem which caused by the separation of ownership and management right. But these theories can't explain the dividend policy in China. Firstly, the paper introduces western dividend theories in theoretical part, and analyses the applicability in Chinese dividend policy. Secondly , choosing listed corporations as the samples, several hypotheses are developed ,research models are established and statistical methods ,such as multi-linear regression, crosstables, are applied to empirical research. The empirical results indicate that dividend distributive level in China are related to the change of earning per share, the last year's dividend distributive level and earning level. And besides, there are large shareholders exploit their power to transfer cash from listed corporation.
Keywords/Search Tags:Dividend policy, Earnings, Capital structure
PDF Full Text Request
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