An Empirical Study On The Dividend Policy Of Corporate Governance Of China's Listed Companies

As one of the core financial management, dividend policy is not only the logical extension of financing and investment activities of companies, but also has a profound impact on the financing and investment activities. Proper and stable dividend policy is the key to establish a positive corporate image and encourage investor's passion of continuing to invest. For a long time, as an important part of corporate finance, dividend policy has been a hot spot of foreign theory and practice in the study and discussion. The formulation of dividend policy will not only affect the price of stock, but also is related to safeguard the shareholders and the companies financing decisions and investment decisions.After several decades of development, modern dividend policy has become a great deal of relevant theory and literature, and research point of view is very extensive, especially the foreign research results. However, most of these theoretical studies are on the basis of relatively mature capital market, and there is no unified conclusion. The choices of dividend policy have been from a single financial decision-making to corporate governance; it is seen as the multi-game results among large and small shareholders and the interests of managers and others. There is a special enterprise system and corporate governance structure. China's listed companies are in the special situation and market environment, this particular corporate governance structure of listed companies in China make dividend policy a lot more meaningful.Most scholars has studying the dividend policy from the viewpoint of factors, for the above reasons, this selection studies the impact of dividend policy from the listing of corporate governance. The main text consists of two parts:Firstly, Theoretical analysis. On the one hand this test analyzed the status of dividend policy of listed companies in China, we found that there are three aspects of dividend policy issues:(1)The dividend policy is lack of continuity and stability; (2) Irregularity on Dividend Distribution;(3) Low dividend payout ratio, no allocation is serious. Then this test analyze the formation of the reasons Separately from the ownership structure, financing point of view, policies and regulations, corporate governance and other aspects of the problem. On the other hand, corporate governance includes ownership structure, board structure, board of supervisors and managers incentive structures, etc. As the ownership structure is the basis for corporate governance, it determines the power of the core shareholders, and thus determines the board of supervisors and managers of the composition and powers vested in. As the executing agency elected by the general meeting of shareholders, the board of directors is on behalf of the general interests of shareholders, and it is the central link of internal governance structure. So this article studied the impact of dividend policy from the ownership structure and board structure which are two aspects of corporate governance structure. Then this article analyzed the status of the ownership structure and board structure characteristics in detail and statistical description. Second, Empirical analysis. This article used the statistical software SPSS17.0 to make empirical analysis of selected samples. The empirical results obtained are as follows:(1) Governance structure of listed companies has affect on the dividend policy to a certain extent, however, due to governance problems inherent in the series, resulting in no significant impact. (2) Company profitability, solvency, cash adequacy and ability of the company's growth and other control variables have more significant affect on the dividend policy. It shows very good control of these indicators dividend policy formulation and implementation.This conclusion is not consistent with previous findings, it because that governance structure of listed companies in China is not perfect. Therefore this article proposes the policy recommendations from the ownership structure and board structure, hoping to find a road to standardize the governance structure of listed companies and dividend policy.