The Analysis, Based On Behavioral Finance Theory Of Dividend Policy Of Listed Companies

Dividend policy is a very important pant of financial management in an enterprise. It will impact the goal that value maximize of an enterprise, and will affect the cash flow, capital leverage or cash funding of a company. In a manner of speaking, dividend policy is a logic continuation of investment decision-making and funding decision-making. The theoretical system of dividend policy formed in 20th century 60s, because of the theory of the formation of 'MM', the theory of 'MM' is the delegate of dividend irrelevance theory. Then, with the perfection of many scholars, has formed dividend relevance theory, including bird-in-the-hand theory, information effect theory, etc. Whatever, many empirical research have improved that reality is inconsistent with the classic financial theory, and these theories couldn't explain some anomalies in the market. Financial experts try to broaden their view, changed traditional methods and thinking. In 20th century 80s, with the develop of behavioral economics, financial experts began to combine sociology and psychology to study the dividend policy, and try to use praxiology explaining the problems that classic financial theory couldn't solve. With many years'evolution, a new science-behavioral finance theory-has formed. This paper make use of behavioral finance theory analyzed some exceptional phenomenon in Chinese stork market.First of all, article introduced some important theories about dividend policy and classic finance, and elaborated the behavioral finance theory, then expanded tow key models:Lintner model and catering theory. Second, to use data in Chinese stork market, we carried out the empirical study, trying to improve that the dividend policy of Chinese listed companies is irrational. The empirical study was divided into three parts:Regression to prove that dividend policy in Chinese company is irrationally, making statistics the dividend premium in China and creating Logistic model to analyze these irrational phenomenon. Last, to base on the result of empirical study, we gave some advises to order Chinese firm when they make the dividend policy.Of course, behavioral finance theory is a new science. It lacks of a totally theoretical framework, some problems haven't solved yet. So, we should effort to search or perfect this theory.