Demonstration Analysis On Cash Dividend Policy Of Listed Corporations In China

Cash dividend is the profit allocated to share holders according to how much stockthey have. Dividend policy is an important part of corporate financial policies;it hasbeen a hot subject among academicians in the world for a long time. With dividendpolicy theories in developed countries, this article is aimed at cash dividend,especially the dividend conditions of listed corporations in China. This researchselected financial data of listed firms from 1999 to 2003.It analyzed the characteristicsand influenced factors of listed firms in China, using statistic and multi-regressionmethod. Through the research, I find some important conclusions. Firstly, whether alisted firm will allocate cash dividend or how much it will give out depends on thecharacteristic of the large shareholders. Secondly, managers will consider thecompany's income state when constitute the dividend policy, so how much cashdividend they distribute depends on their earnings. In the end, this article bringforward some suggestions to better build dividend policy of listed firms in China,based on the demonstration analysis.