On The Stock Dividend Policy

With the establishment and development of the socialist market economy, stock companies have become an important form of our enterprises. One of their features is to provide shareholders with dividends and bonuses, or "dividends on shares" for short. As to listed companies, the paying rate, form, time and the frequency of dividends on shares will affect the prices of their shares, their abilities to refloat and accumulate funds, and will affect their future development in the securities market. The article is composed of six parts as the following. 1. Introduction This part mainly studies several basic problems in relation to the concepts, the main contents, the significance, the goals and the principles, and so on, of this dividend policy, which is an important part of companies financial policy, and the general policies and strategy adopted according to the outside and inside situations of the companies when the company authorities decide the dividend on shares and other related matters.. 2. The theory of dividend on shares. Due to the different theoretic basis, the different law system and the different situations in different countries, we should not mechanically apply or copy the western theory when making use of it, and we must take into account our own actual situations of the companies after-tax profit distribution. 3. The factors of affecting the dividend policy. The three factors affecting the dividend policy---the law system, the stockholders and the companies themselves---are chiefly analyzed in this part, which must be comprehensively considered in making the dividend on shares policy. 4. The types of the dividend on shares policy This part mainly studies the four types of dividend on shares policy at the angle of their concepts, advantages and disadvantages. And the companies should choose them prudently. 5. The providing forms of dividend on shares. This part primarily analyses the concepts, advantages and disadvantages of five common providing forms of dividend on shares. When companies adopt the forms, they should consider not only the limitations of the law system, but also their particular conditions. 6. Laying down the dividend on shares policy. This part firstly analyses the present conditions of the dividend on shares policy of listed companies, and points out the current problems and proposes some suggestions for their improvement. Then taking the W stock company as an example. It has probed the ways of how to make the dividend on shares policy.