An Empirical Study On The Issue Of Chinese Corporaton's Dividend Policy

The dividend policy of Chinese corporation has changed a lot since the year 2000, when China Security Regulatory Commission declared a new regulation relating to issuing new securities. The signaling theory and agency theory of dividend policy draw much attention of many scholars both at home and abroad. Using a new methodology, this paper tests the efficiency of dividend signaling theory in China. Also, it studies the relation between cash dividend and corporate governance in China.Chapter 1 is the introduction of this paper. In this section I provide the backgrounds and value of this research, and also provide the methods and thinking of the study.In chapter 2, I introduce the 5 different dividend types, and count the feature of dividend policy as well as cash dividend policy in Chinese corporation.In chapter 3, I look back the relating theory of dividend policy, the research of dividend signaling theory both at home and abroad. Then, I point out the shortcomings of domestic research on this issue. Also, I look back to the research on the relations between cash dividend and corporate governance.Chapter 4 is the part of empirical research of signaling theory in China. Using Logit model, I predict the adjusting of dividend in Chinese Corporation. Then, according to the prediction and the real dividend adjusting, I divide the dividend adjusting into six different types, and test the signaling theory of each type. The testing result says that the signaling theory is efficient whether dividend is increasing or decreasing, and it is more efficient when dividend is decreasing.Chapter 5 is the empirical testing of the relation between cash dividend and corporate governance. I choose a series of indexes on corporate governance to study the relation between cash dividend and corporate governance. The result tells us that as an efficient mechanism to decrease agency costs, the cash dividend is a substitute for other governance mechanism.Chapter 6 is the conclusion of this paper. I summarize the contents of this paper, and put forward some suggestions. Then I display the innovations and shortcomings of this paper.