Analysis Of Behavioral Finance Perspective, The Dividend Policy Of Listed Companies In China

"The mystery of dividend" has long been paid attention to by theory circle and practice circle.As the stock market in China standardizes and develops,the dividend policy of the listed companies will influence the market more and more evidently. Different from the foreign dividend policy which mainly represented in cash,the domestic dividend policy is characterized with diversity.Such irrational dividend behaviors as non-distribution,ultra-ability cash dividend and high stock dividend have appeared a great deal.Owing to this,it is necessary for us to observe and study the dividend policy of Chinese listed companies from different angles so as to explore the hidden factors of the policy.In this paper,the research focuses on the following points.First,the development of the dividend policy and the present research status at home and abroad are simply reviewed.The theories of dividend distribution under the standard financial theory and the behavioral finance are discussed respectively.And some important conceptions of behavioral finance theory are introduced.Second,the present condition of the dividend distribution of the domestic listed companies and the background of the market are described.Some irrational phenomena in the system of the dividend distribution of the domestic listed companies are pointed out.Third, based of the theory and reality,the study method combining criterion and demonstration is used to analyze the listed companies of high stock dividend.And the motivation behind the policy of high stock dividend is analyzed with the use of the finance theory.The research shows investors are influenced by cognitive biases and have irrational psychological expectation for the dividend distribution system of the listed companies.However,the listed companies cater to investors and establish corresponding dividend distribution scheme.The result of the demonstration also shows,the change in the number of the listed companies of high stock dividend has no influence on the future current of the whole market.Through the angle of behavioral finance,this paper combines the behavioral finance theory with the moving current of the market for the first time,and analyzes the policy of high stock dividend in China in detail.Through the description of the herding effect,this paper applies the catering theory and expectation theory to analyze the investors' psychology biases on the market and the change of the psychological expectation of the management of the listed companies,and explains the dividend policy of the listed companies from the psychological angle.Finally,starting with the perfection of the share option distribution system in China,this paper brings forward some suggestions to father the dividend distribution behavior of the domestic listed companies and hopes to be helpful for protecting minority investors' interest.