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An Empirical Study Of Key Factors Affecting Chinese Blue-Chip Compnies' Dividend Policy

Posted on:2009-07-04Degree:MasterType:Thesis
Country:ChinaCandidate:T XuFull Text:PDF
GTID:2189360245475310Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
As one of the three important policies of financial management of listed companies, dividend policy plays a crucial role in operating and development. Therefore, it has an important practical significance to study the key factors of listed companies' dividend policy. Chinese blue-chip companies are favored by investors for its high investment returns and, as an outstanding group in listed companies, their dividend policy is representative. The high level of profitability, development capacity, financial stability and strong capacity to pay dividends makes Chinese blue-chip companies an ideal object for empirical study on dividend policy.Based on the statistical analysis of relevant data from the year 2004 to 2006, this paper studied the dividend distribution characteristics of Chinese blue-chip companies at first. Then, after a theoretical analysis on the key factors affecting dividend policy, this paper makes an empirical study. From the study result, liabilities-assets ratio, liquidity ratio, gross profit rate of assets, holding ratio of the largest shareholder, log equity scale, ratio of holdings between the largest shareholder and the second largest shareholder, dividend payment rate of last year, earnings per share and operating cash flow per share make significant affect on the dividend policy of Chinese blue-chip companies. The special result is: the adverse selection of Chinese blue-chip companies' largest shareholder have been radically changed after eliminated the drawbacks of the shareholding structure through share reform. So the result also affirmed the effectiveness of the share reform. At last, this paper makes explanation of the empirical results, analysis the reasons for its formation, and put forward relevant suggestions.
Keywords/Search Tags:Dividend policy, Blue-chip companies, Dividend payment rate, Share dividend, Share reform
PDF Full Text Request
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