Study On The Motivation Of Dividend Policies Of China's Listed Companies

With the development of securities markets and the growth of listed companies, it is becoming increasingly important to study on the listed companies, including study on the dividend policy. Dividend policy is the main elements of a listed company's financial management , it is not only related to the interests of the shareholders, but also the future development of a listed companies; Dividend policy is a financial strategy of the listed company which will make a rational allocation between the retained profits and tax receipts, and is an important component of the company's financial activities. Reasonable dividend distribution policy can not only establish a good corporate image, stimulate the enthusiasm of the vast number of investors on the company's continued investment, but also can obtain conditions and opportunities of the listed companies'long-term and stable development. The various forms of instability of dividend distribution ,the lack of continuity and the refinancing constraints and a short-term of dividend policy, and the comparatively small amount of dividend,all these phenomena are relevant with the corporate governance.In China, the companies Governance is not perfect, due to the dominance of the ownership structure of listed companies which leads the manager and the major shareholder have the motive of manipulation, and the relatively weak banks which lack of capacity for governance of listed companies could not afford tough constraints of an effective external management . After share reform, there is a change in ownership structure which affect corporate governance , and the difference between the non-tradable shares and the tradable shares ends,so the interests of these shareholders converge,then the dividend policy also changed.Therefore this paper is written at the background of share reform, using the relevant data about corporate governance to test the western theories of dividend policy, with a view of providing investment and policy recommendations to investors and regulators. Based on comprehensive study of the dividend policy, this paper analysize the impact of dividend policy from the angle of corporate governance structure which is considered as a whole,and at last give some relevant policy recommendations and advice.