Research On The Dividend System Of Listed Companies In China

With the rapid development of capital market in our country, the issue of the listed company’s dividend has received extensive attention by the society. Since 2004, the CSRC(China Securities Regulatory Commission) has developed a series of policy to restrain the behavior of listed companies and combined the dividends of listed companies with its refinancing qualifications. In recent 10 years, China’s regulatory has been strengthening policy regulation and changed the policy gradually from the quantitative regulation to the qualitative regulation, which prescribed the percentage of the specific dividends. What’s more, the CSRC has not only improved the proportion of the dividends, but also limited the way of paying dividends, which is the only cash dividends. The CSRC has further improved dividend policy in 2013, coming up with some Suggestions of the differentiation strategy of dividends.Under this background, this paper adopts the method of combining theoretical analysis and empirical analysis on the listed company dividend research.In the theoretical analysis part, based on the condition of dividends of listed companies, the article analyzed the causes of the problem of dividends on the listed companies.First of all, this article selects the related data from 2004 to 2014. Respectively, this article did the analysis from the dividends will, dividends level, the continuity and the stability sides. Combined with the data analysis results, in terms of dividends will, half qualitative regulation stage of mandatory dividend policy dividend and the number of listed companies don’t pay dividends were little changed. After the transition to the quantitative regulation, not dividends of the corresponding reduction in the number of listed companies, but overall the dividends of listed companies will not strong, do not pay dividends phenomenon is relatively common. In terms of level of dividends, most of the dividends of listed companies in a relatively low level, existing dividend "cluster" phenomenon, reflects the distribution of most listed companies dividends distributed symbolic, is the regulation in order to cater to the CSRC. And this half-mandatory regulation "blind spots" dividend policy, namely no financing needs of listed companies is not controlled. The policy on the agreed 30% dividend threshold to a certain extent, also contributed to the previous high levels of dividends of the adverse selection of the company. At the same time, there is also a part of the loss of listed companies are also involved in the phenomenon of dividends and the phenomenon of "excess cash". For 11 consecutive years in terms of continuity of dividends, the number of companies to participate in the dividends of listed companies accounted for less than 10%, the same proportion of three consecutive years the largest dividends, but is only 16.59%, also shows that Chinese listed companies dividend continuity is very poor, and continued throughout the dividend "making company. Dispatch in stability of dividends, dividend rate down by poor frequency interval span is big, the mean and variance of the extremely high, the maximum are unusually high, illustrates the dividends of listed companies in China lacks stability.Secondly, comprehensive reference related literature at home and abroad, this article from three aspects: listed companies, investors and government analysis of the cause of the related problem of dividends. In the level of listed companies, corporate governance structure is imperfect, executive behavior of the free and the controlling shareholder of the "internal behavior led to the" low level of dividends and dividends of listed companies. In the aspect of investors, institutional investors not as small and medium-sized investors prefer to send bonus and do not take the dividend behavior also to a certain extent, affected the listed company’s dividend decision. At the government level, the microscopic behavior of local government will intervene to control the listed company cash to local fiscal subsidies, macro half of the defects in the mandatory dividend policy directly affects the stability of the dividends of listed companies.In the empirical analysis part, in view of the existing literature from the theoretical level of half-mandatory effect of dividend policy in China is analyzed, and the CSRC in 2013 with the new added and few literature relating to the differentiation strategy of dividends, this paper puts forward two assumptions, using binary discrete choice model and Logistic Tobit multivariate linear regression model for empirical test. The empirical results show half-mandatory dividend policy significantly improved the level of dividends and dividends of listed companies, the policy is effective. Determine the company’s growth, capital spending and will, negative correlation between the level of dividends, dividends that differential dividend policy has certain feasibility.Combined with the theoretical analysis and empirical test, this paper further puts forward some Suggestions of improve the system of our country listed company dividends.First of all, in the short term should further strengthen our country’s mandatory dividend policy, dominated by external supervision to improve China’s listed companies pay dividends. Suggested that the amount of the financing and dividend tied, moderate limit annual dividend, targeted to improve the regulation of "making company, in violation of the provisions of the policy of listed companies should increase the intensity of punishment, punishment means. Policy documents, to further standardize the dividend information disclosure of listed companies, encouraging intermediaries, such as the media take advantage of the Internet to strengthen the supervision of listed companies pay dividends.Secondly, in the medium term should constantly perfect the medium and small investors’ interests protection, raise the number of annual dividend of listed companies and gradually push the quarterly dividend. Protection of the interests of minority shareholders in perfect, Suggestions to strengthen the guidance and the education of small and medium-sized investors, improve its participation in the company dividend decisions, strengthen the role of institutional investors, to collect dividends have been phased out. In terms of promoting quarterly dividends, should draw lessons from foreign mature capital markets experience, lead investors to develop the concept of investment, long-term investment value.Finally, in the long term should gradually straighten out the internal governance of listed companies in our country, cultivating culture of the dividends of listed companies. On how to improve the internal governance, it is suggested that the first thing to constantly optimize the corporate internal governance structure, improve the consciousness of dividends of listed companies. Second, constraint executive behavior, strengthen the equity incentive plan, in terms of executive compensation contract add to the terms and conditions of the dividend, makes the executive compensation and corporate dividends. Finally, constraints, the controlling shareholder’s "internal behavior", strengthen the supervision through high sent now "empty" behavior of listed companies, under the background of full circulation shares, give full play to the positive role in the controlling shareholder in the company dividend decisions.