Wu Liang Ye Company's Dividend Policy Research

A reasonable dividend policy conducive to the balance of company's long-term development and the current income of shareholders, also coordinate the interests between different groups of shareholders, it is very important to the development of the capital market. Therefore, the research on dividend policy has attracted the attention of many scholars. In this articl, I reference number of studies of dividend, use the catering theory of dividends to study the shares of Wuliangye Company's dividend policy. In this paper, I use the distribution plan of every year, some financial data,select consider scalar, verify whether the dividend of Wuliangye company to meet the catering theory, and analyze the reason of Wuliangye company's dividend distribution.Firstly, I describe the dividend situation on the domestic, and I found that there are many companys such as Wuliangye who pay a low-dividend.In the paper, I review some import articles about dividend policy and finally I choose catering theory as basis of this article. In the second chapter, I introduced to the catering theory of dividends, including the background of the theory, the assumptions of the theory and the modle of the theory, help us to understand the catering theory of dividends. In the next two chapters, have done some theoretical and empirical analysis about Wuliangye company's dividend policy, I selected the date of distribution from 1998 to 2008, analyze the method of dividend distribution, the payment of cash dividends, the profitability of Wuliangy company, want to know the reason and the impact of the dividend theory . Wuliangy company has a high rate of growth, high value, low debt ratio and low dividend payout ratio characteristics. After empirical testing, he research shows Wuliangye company's cash dividend policy have not cater to the preferences of medium and small shareholders, by deeper study I found that the theory made more conducive to the interests of major shareholders, small shareholders only in the passive acceptance.Finally, this paper bring forward some suggestions to dividend distribution behavior, these suggestions from Wuliangye management systems and national laws two aspect, involving corporate governance, equity reform and investment philosophy, when we have a more rational system basis, hope the dividend policy taking into account interests of all parties, especially the protection of minority shareholders interests are not infringed. Each listed company healthy to promote the healthy development of the capital market, so pay attention to the shareholders of listed companies is the cornerstone of the development of capital markets, also a sign of the maturity captical market.