Dividend Policy Of Listed Companies In China

Research background:The dividend policy is one of the most important activities of corporate finance. On one hand, it is a logic continuer of financing and investment of the company, and it is a certain outcome of financial management. On the other hand, appropriate dividend policy not only can establish the good corporate image but also can stimulate the enthusiasm that investors invest in the company continuously which make company get long-term, steady development terms and chance. With the development of capital market, the dividend policy becomes the main subject that researchers focus on. Along with the establishment of different theories, people have deep understanding about the dividend policy. However, there is not any conclusion to the dividend policy, neither in the western developed country nor our country although a large amount of literature exists."Fan of dividend"still exists.Since 1990s, the capital market of China has made big progress. It walks the road in several decades which took western security market a century to accomplish. Although we have made immense success, we still have long way to go. Because there is huge disparity between western capital market and the capital market of china. At present, the formulation of the dividend policy of Chinese listed company is disordered. On one hand a lot of companies distribute the great amount of bonus, even beyond the company's capability. On the other hand the dividend pay-out ratio some companies is extremely low, though the income of that year of the company is very high, and the cash flow is sufficient. At the same time, the dividend policy of the listed company lacks continuity. Take chengde lulu (the stock code is 000848)for example. Chengde lulu reveals the dividend of 2001 is 0.66 yuan per...