The Study On The Influential Factors Of The Dividend Policy Of Chinese Listed Companies

The firm's dividend policy, one of cores of its financial management, is the logical continuation of its fund-raising and investment. It also has far-reaching influence on company' fund-raising and investment . The proper and stable dividend policy within the company is the key to establish its favorable image and encourage investors' constant investment. It has been studied and discussed by theory and practical circles international and domestic. In the west, the corporate finance has stepped into modern stage characterized by evaluation of corporate values and its dividend policy, after the traditional stage with traits of fund-raising and the comprehensive stage featured with capital's proper allotment and investment.It has been over 10 years since the Shanghai Stock Exchange was opened on Dec. 19, 1999. In China, listing companies are mostly reconstructed from state-owned enterprises. The country's stock market has become vital part of people's economic life, playing an active role in its economy. While we should be aware of that our stock market is still young and many problems need to be urgently addressed. For example, the instability and discontinuation of dividend policy in listing companies, the serious problem of middle or short-term behaviors in dividend distribution, as well as the irrational phenomenon of high cash dividend (The dividend payout ratio of Foshan Electrical and Lighting Co., Ltd has kept at over 70%). According to some statistics, investors can not afford stamp tax resulting from investment by using the dividends distributed by listed companies. Above problems harms investors' interest, discourage the medium and small investors from investing, and thus hinders the development of China's stock market. Therefore, the research on dividend policy in China's listing companies has come to draw extensive attention from accounting, financial and economic circles. It finally becomes, a key topic of the corporate finance in academic circles at home.The essay contains five chapters. In Chapter 1, the author, based on introduction of dividend policies, firstly raises the aim and significance of the article, then interprets the affecting factors and latest research news of the policies.In Chapter 2, the writer, by studying from, domestic listing companies' practice of dividend in China, gradually analyzes it' overall features as well as traits of cash dividend and stock dividend policies. Hence he concludes its side effects on market, investors, companies themselves and the society. In chapter 3,it is the important point, the writer firstly gives analysis of external factors affecting dividend policies of domestic listing companies, and then highly analyzes their internal factors, lastly uses examples to testifies affecting factors of cash dividends and stock dividendsIn Chapter 4, the writer, after looking back to theories of dividend policies overseas, deals with features and causes of dividend policies in practice from international listing companies and their illumination upon our country.In Chapter 5, the writer gives the suggestions of optimizing domestic listing companies' dividend policies by means of strengthening supervision and companies' management. Moreover, the author hopes to provide references to management team in listing companies for their regulating the proper dividend policies as well as to investors for their making rational investments.