Corporate Dividend Policy Choice Motivated Empirical Research

Dividend distribution is one of core contents of financial management in modern companies. Appropriate dividend distribution policy cannot only set up good company reputation, but also arouse enthusiasm of many investors thus making companies acquire long and stable development opportunities and conditions. Western countries conducted research into dividend policy in 1950's and have made great achievement after 50 years' study which offers great help to companies' financial management and government's constituting relative rule and law. With the development of stock market, more and more listed companies come forth and their dividend distribution policies are quite different from each other. On the whole, because of imperfect stock market in China, dividend distribution is very unsteady and random. To solve the problem, how to make decision in the process of selecting dividend distribution policies should be known at first. Considering the completeness of data and the stability of market environments, data of 2004 is selected as major study object.This thesis is divided into five chapters to discuss the issues of dividend distribution. In chapter 1, many key words are defined again, and then the study's intention, object and the thesis' structure are introduced. The chapter 2 analyzes financial theory of maximizing shareholders' interests and finds many effects of dividend distribution policies at first. Then introduce many research results relative to these effects including inner and outside of our country. The third chapter is to analyze the problems of dividend distribution existing in Chinese listed companies, including: instability as a whole in dividend distribution, impure motive in distributing dividend and the effects of hold-share structure on dividend distribution. The forth chapter is about empirical research and analysis, which is the most important in the thesis. In this chapter, there are three parts: the first is to analyze the effects of whether to distribute dividend, the second is to analyze the continuity of dividend distribution, and the third is to analyze the effects of how much to distribute dividend. SPSS software is used to find out the empirical model. The fifth chapter is about conclusion and suggestion. On the basis of empirical research, suggestions are put forward for management of Co. and securities regulatory commission. At...