The Study On Dividend Policy Of Chinese Listed Companies In Capital Market Based On The Agency

Dividend policy of the listed companies is one of the three core problems in modern company's financial activities.Appropriate dividend policy can reflect the extent of corporate finance and affect the company's financial structure and investment activity or financing activity.It also contributes to establishing a good corporate image and increasing confidence of investors.Agency theory is one of the mainstream theories to explain the dividend policy.Its basic idea is that dividend policy can be used to solve the agency problem arisen from the separation of ownership and managerial authority effectively.This paper tires to explain present dividend policy of Chinese listed companies using agency theory,proposing suggestions in order to increasing corporate value.This paper is divided into seven chapters.Chapter 1 is an exordium of paper referred to study background,research thinking,methods and innovations.Chapter 2 is a literature.It introduces present study status at home and abroad about dividend policy and agency theory.Chapter 3 is the theoretical part of our paper.The first segment introduces basic theory of dividend policy,including its connotations,classical school and modern school.The second segment gives a review on the basic theory of agency policy.Chapter 4 describes the present status of dividend policy using descriptive statistical method and its reasons.Then it analyses relationship between Chinese dividend policy and agency theory.In chapter 5,it is empirical analysis.In terms of empirical research,based on theory analysis and present cash payout of Chinese listed companies,we construct empirical models to explore the relationship between dividend policy and agency problems.We get data from Shanghai stock exchange from 2003 to 2007.It analyses the agent problems and the problems in dividend policy of listed companies in our country.In chapter 6,there are suggestions on standard Chinese dividend policy,protecting the interest of minority shareholders and promoting the development of capital market.Chapter 7 is the conclusion of this study. It also points out limits of this paper and prospects for future research.We get the following empirical results.Firstly,there is a positive change in the payment of cash dividend.Secondly,there is the tendency of standardization and toward seientizing on dividend policy.Thirdly,listed companies have agency problems between mangers and shareholders and controlling shareholders and minority shareholders.But because of our unique ownership structure,it is still more serious that agency problems between controlling shareholders and minority shareholders. Fourth,it is useful that agency theory explains the effectiveness.Dividend policy can reduce agency cost,but its effectiveness is limited.