Analysis On The Joint Factors Of Capital Structure And Dividend Policy Of Listed Companies In China

Capital structure and dividend policy of listed companies has been the cores of financial management, for decades, have received experts and scholars as well as managers and the shareholders superintendent's attention. In the company's financial management, Capital Structure theory, including MM theory, trade-off theory, agency cost hypothesis, signaling theory, the pecking order theory, control theory. Theory of dividend policy contains MM theory, a bird in the hand theory, Poor tax theory, the clientele-effect theory, agency cost theory, signaling theory, transaction cost theory, behavioral theory.This paper analyzes the capital structure and dividend policy, and noted that the capital structure and dividend policy of neutrality between the joint nature of the interaction between the two exists as a variable system, build a structure of the equations model using two-stage Least squares on the estimated equations to test the existence of their affect and the relationship between each other and their respective factors to be tested.The study found evidence of this article: 1. Capital structure and cash dividend policy is determined simultaneously, and other conditions at the same time, high corporate debt levels tend to lower the rate of payment of cash dividends; On the contrary, the cash dividend payment rate high in their Capital structure with less debt.2. Taking into account the capital structure and dividend policy interaction under the influence of large companies, mortgage assets may be more inclined to use the company's high debt; strong profitability, unique products, companies have more non-debt tax shield are not willing to pay more And more debt.3. In the cash dividend policy factors, the size, growth is significantly related to the profitability of cash to pay dividends have a negative impact, the greater the proportion of non-tradable shares, the higher the rate of payment of cash dividends, and to consider capital Structure, free cash flow in the first and largest shareholder ownership of the dividend policy is not significant.