| In recent years, China's securities market has developed rapidly. According to "Guidelines on Industrial Classification of Listed Companies'promulgated by China Securities Regulatory Commission in 2001, China's Shanghai and Shenzhen listed companies are classified into 13 categories among which the manufacturing industry has the largest scale and the biggest number of listed companies.. Since China's reform and opening up, with the construction of domestic infrastructure, the increasing demand of people's lives, and the transfer of international industry, China's manufacturing industry has experienced rapid growth. It accounts for a high proportion in our GDP and provides a large number of jobs. The manufacturing industry has become an important part of our state financial revenue and the national economy. It has laid a solid foundation for the further development of China's national economy. China's manufacturing industry is not only large-scaled, but also has many advantages in the international competition. For example, due to lower labor cost, China's manufacturing industry is competitive in labor-intensive industry and products. And the manufacturing industry has a relatively perfect base. But meanwhile, China's manufacturing industry is also faced with many challenges. For example, in the international division of labor, China's manufacturing industry is at the bottom of the manufacturing sector, featuring low profit, high consumption of resources, and high damage to the environment in the industrial chain. Recently, the economic crisis caused by the United States has gone worldwide. It has seriously affected Chinese export. Many manufacturing companies are faced with products backlog, financial crises or even bankruptcy. Besides, China's manufacturing capability of independent innovation is weak and so on. In our stock market, about half of the listed companies belong to manufacturing industry. Manufacturing companies have a certain similarity in production and management. The choice of its dividend policy may be subject to a number of internal and external factors. Dividend policy is a kind of strategy on how to allocate reasonably the after-tax profits of listed companies between shareholders and retained earnings. Dividend is related to the benefit distribution among the management authority, shareholders, creditors and the others. It also concerns with the market image of the listed companies, and has an influence on the development of the listed companies. Generally speaking, investors of listed companies will have an expected dividend payout, which is based on the change of factors influencing the dividend policy, and these factors will influence the company'value by influencing its stock price. As one of the three core strategies of modern corporate finance management, dividend policy has been studied at home and abroad. But these studies did not achieve consistent results, theoretical analysis and empirical tests often can not match each other. This phenomenon is called "dividend puzzle" in financial economics literature. Due to different study time periods, various research perspectives and sampling, all kinds of conclusions are reached. Being based on the study of dividend policy theory and literature both at home and abroad, this paper explores the financial factors that influence China's manufacturing industry dividend distribution by analyzing the present situation of China's manufacturing industry. This paper lays emphasis on analysis of profitability, debt levels, asset liquidity, grow capability, and possible influences on dividend distribution policy caused by company size. By building multiple linear regression model and collecting relative data of manufacturing listed companies from 2005 to 2009, the above hypothesis is verified. Finally, some countermeasures and suggestions are proposed in order to make China's dividend distribution policy perfect. The study helps to understand the financial factors on the choice of the dividend distribution policy of listed companies. It has certain reference value for manufacturing companies to develop a rational and effective dividend distribution policy. |
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