Dividend Policy Of Listed Companies In China

1,Background significance of selecting the topicDividend policy is one of the three key contents of the corporate finance activity of modern corporate. On one hand, it's the logic sequence of company's finance and investment activities. On the other hand, the dividend is the cooperative and competitive negotiation result among different interest entities, so the appropriate dividend policy is significant for perfecting governance structure and improving market value of the corporate. Since Shanghai Stock Exchange was set up in 1990, the dividend distribution of listed companies of our country has demonstrated strong distinct Chinese characteristics.Based on the MM theory, the financial scholars have studied the dividend policy from the behavior mode and motive of the relevant entities on the premise of loosening suppose progressively. In the case of information asymmetry, people have analyzed the decisive factors of the dividend policy through two main ways, which are signal transferring and agency problem. The agency theory of the dividend policy creatively connects the question of interest conflict of the shareholder,Manager and creditor. The agency theory of the dividend policy in the west evolves from mature market economic system; therefore the foundation that the dividend policy produces lies in the perfect company management mechanism and external restrictive environment of market. The company management mechanism and outside restrictive environment of our listed companies differ from this largely.When researching on dividend policy in our country, scholars generally concentrate on market value of the company and the factors that affecting the dividend policy of listed companies by using Empirical Analysis. But they seldom start from the corporate governance structure, which inspire the author to research the dividend policy from the point of view of principal –agent.2,Basic train of thought ,and main contentsThis thesis analyzes the relationship of the agency problem and dividend policy at first, then comes to a conclusion that the corporate governance structure is the decisive factor on dividend policy by influencing the motive of entities. Finally, the paper analyzes the decisive factor on the dividend policy of the listed companies in our country. That is the corporate governance structure. Therefore, the author put some political suggestions on optimizing the dividend policy of the listed companies in our country.The thesis includes five chapters. The first chapter is the overview of the theory on dividend policy. This chapter begin with the review of the western theory related with dividend policy, basing on the MM theory, then review the domestic research on the topic.The second chapter is the key theory on dividend policy. This chapter analyzes three kinds of agency problems by the motive of the relevant entities, then on the basis of which the author sets up the framework of his paper.Third chapter analyzes the dividend policy of our country's listed companies by the agency theory. Firstly, the chapter analyzes the characteristics of the dividend policy in our country's listed companies by statistical data. Then the chapter analyzes the behavior of relevant entities by the principal-agent theory on delegation chain of power.The fourth chapter mainly talks about the decisive factor on dividend policy by empirical analyses. Finally, the author draws a conclusion that the internal corporation governance structure (proportion of float stocks, the share proportion of the first big shareholder) and the external control environment is the most crucial factor influencing dividend policy. The fifth chapter mainly offers some political recommendations on optimizing the dividend policy. From the principal-agent, the author comes to a conclusion that we should perfect the external market environment and optimize the ownership structure for optimizing ownership structure.3.The angle of research and innovation(A) The thesis adopts principal-agent theory to analyze...