Dividend Policy Behavior Of Chinese Listed Companies Financial Analysis

Since Miller and Modigliani published their classical paper in 1961, corporate dividend policies have been subjected to intense theoretical and empirical investigation for over 30 years. After 30 years ,there are so many dividend policies theory, a lot of difference exist in these theory. This thesis divide these theory as two categories :one is the dividend based on traditional finance the other is based on behavioral finance . The two categories have different directions .The dividend based on traditional finance is based on efficient market hypothesis .The dividend based on behavioral finance lead the psychology into the theory to explain the dividend policy。The dividend policy based on EMH(the efficient markets hypothesis) face puzzle :1 dollar cash dividend has no difference with 1dollar capital gain ,in fact the investor pay no attention to the listed firms which do not distribute dividend .Why so many listed firms make the decision to distribute dividend even cash dividend is taxed by 20% and stock dividend is exemption from tax .Why the price of the stock rise when the company make the decision to distribute dividend .The dividend policy based on EMH do not rationally explain the Puzzle of Dividend. To listed firms in China there are so much puzzle of dividend policy .Why a lot of companies frequently change the dividend policy ?Why so many companies do not distribute dividend? Why a lot of listed firms make the decision to distribute excessive cash dividend? Why minority shareholders prefer stock dividend to cash dividend? The thesis explain the puzzle with the behavioral finance relate theory such as Catering Theory,Rational Expectation Theory,Regret aversion Theory,Self-control Theory. Prospect theory and Mental accountingThe thesis includes five chapters.Chapter one tell us about the simple theory of traditional finance...