The Empirical Research Of Cash Dividend Distribution In China's Listed Companies

The dividend policy is one of the important content in the corporate financial decisions and it is an extension of financing and investing. The dividend policy makes a reasonable allocation between after tax income and residual income. So far, the academics study the dividend distribution on many aspects. This paper is mainly studying the cash dividends distribution policy between state-owned and private-owned listed companies, employs norm and empirical research methods. This is the first creativeness in this paper. Besides, this paper quotes the catering theory of dividend to analyze the empirical reason. This is another creativeness in this paper.Baker and Wurgler had brought forward catering theory that is said that the reason why corporate pay dividends is to raise the stock price. Rational managers will cater to shareholder's changing demands for dividends. The theory is not suit for our situation. Our scholars make a good extension on catering theory. Under our particular equity structure, we found that the catering theory can't explain Chinese public corporate dividend policy. Managers cater to large shareholders'demands instead of whole shareholders. The demands of middle and small shareholders are ignored. Besides, this paper put catering theory into magnitude of cash dividends distribution. All these make a strong theory foundation for this paper.Under the guide of the catering theory, theory parts summarize the catering theory and its domestic and foreign literatures. All these make a bedding for the empirical parts. Then this paper introduces the present conditions and problems of the cash dividends distribution in our country. In empirical research parts, first, makes a descriptive statistics on profit ability between state-owned and private-owned listed companies, in order to compare these profit ability. Then under the basic of profit ability, makes empirical analysis about the inclination and magnitude of the cash dividend distribution between state-owned and private-owned listed companies. And by the respective use of logistic model and multivariate linear regression model, this paper draws into a conclusion. The conclusion is the state-owner listed companies with lower profit ability but pay higher cash dividends than private-owned listed companies. At last, this paper combines theory and empirical research, rationally uses a catering theory of dividend to explain the phenomenon. Country supplies capital to state-owned listed companies and will demand rewards, so state-owned listed companies with lower profit but pay for more cash dividends, in order to protect state images and cater to large shareholder's demands ignoring the demands of middle and small shareholders.Based on these conclusions, the paper gives some suggestions from equity structure, market supervision, profit ability and financing condition. All these suggestions base themselves upon condition of our country, and raise this paper to higher level.