Research On The Cash Dividend Policy Of Chinese All-tradable Listed Company From The View Of Agency Cost And Signaling Theory

Distribution of the profits, whose core is dividend policy, is an important step of corporation finance. Many theories try to explain the puzzle of dividends. Agency Cost Theory and Signaling Theory are two main theories in western research of dividend policy. Agency Cost Theory holds a view that cash dividend can reduce agency cost in corporation; Signaling Theory holds a view that the cash dividend policy could be a signal of information in corporation, and to be transferred to investors in stock market, it can make them know more about the corporation.As the stock right decentralized allots revolution begins, the environment of the stock market is going to be mature. The paper first did statistic analyze of characteristics of dividend policy and cash dividend policy of all listed companies and all-tradable listed company, and summarized them finding that the cash dividend level of all-tradable listed company is higher than other companies. Secondly, the paper chose cash dividend policies of all-tradable listed companies as the sample, and find out some indexes to measure the agency cost, then put them in a regression model to test that whether cash dividend policy can reduce companies'agency cost and the relationship between agency cost and the level of cash dividend. Research finds there three aspects of agency cost influence companies'decision of whether pay the cash dividend or not, and two of the three influence the cash dividend level, one is the agency problem between stockholders and creditors, the other is the agency problem between large stockholders and small ones. Thirdly, the paper chose all-tradable listed companies who paid cash dividend as the sample, analyzed CAR caused by cash dividend policy proclaim, and found it a way to transfer the information in corporation to outside.Finally, the author advanced some proposals which are hoped to be helped in the building of standard dividend policy and promote the capital market development.