Empirical Analysis Of Dividend Allocation Policy In China

Although recently the Chinese listed companies have experienced a fast development, and some measures have be taken to perfect the Chinese capital market, there still exists irrational dividend allocation phenomenon. In fact, dividend policy plays an extremely important role in corporate financial management activities, equally important as financing and investment policies. So, the research on the dividend policy of Chinese listed companies have an important practical significance.The research will start from the dividend allocation characteristics of listed companies in China, through analyzing the statistical data related to the dividend f rom 2001 to 2005, using empirical analysis to find out the main influencing factors on Chinese listed companies'dividend allocation policy. Considering plenty of listed companies in China take the capitalization of share premium as a type of dividend allocation, my research includes the substitutable problems between cash dividend, stock dividend and capitalization of share premium.Through the research, we get the conclusion that the profit rates, the main operating income growth, the proportion of flowed shares, and debt-to-asset ratio have apparently effect on the dividend allocation policy in Chinese listed companies, and there definitely exists substitution between cash dividend, stock dividend and capitalization of share premium.