Dividend Policy Of Listed Companies In China

Dividends Policy is one of the core content of corporate financial management of contemporary corporate, and it is also a main problem in western corporate financial management. This paper will first analyze the history of dividend policy of Chinese listed companies, then sum up the main problems existed in listed companies in issuing dividend policies, and lastly put forward some suggestion on this basis.This paper is divided into four parts. In part 1, this paper introduces some relevant definition of dividend policy. Then reviews a great deal of relevant western dividend policy theories on the basis of time sequence. On this basis, this paper make a brief introduction of dividend theory drawn by our financial researchers published in some important magazines.In the second part, this paper analyzes the dividend distribution in Chinese listed companies from 1992 to 2001. It first introduces the distribution style in listed companies and makes a summary of dividend distribution through different dividend styles. Then makes statistic description of non-dividend phenomena. In the last, this paper introduces some activities that not conform to the standard.In the third part, this paper analyses the motives for dividends distribution through imperial methods. Motives of dividend decisions include internal and external factors. Empirical result shows: factors that influence dividend decision are: earnings per share 2000, earning per share 2001, net profit 2001, total asset in the end of 2001, net operating cash flow per share 2001 and net ratio of stock price to net asset per share.In the forth part, this paper puts forward some suggestions for the government to perfect companies' dividend behavior on the basis of discussion above.