The Empirical Research On Dividend Policy Of Listed Companies In Non-ferrous Metals Industry

Dividend policy is a listed company in the accounting period the decides how to allocate its income, is the scope of financing decision, which related to the number of pre-profit have accumulated can be used for re-investment companies, because next year the retained profit of the company is a major part of investment funds.How the listed company directly affects the distribution of benefits for the development and growth of listed companies. How dividend distribution and the trade-offs between retained, what is taken Dividend policy, is an important part of decision-making of listed companies. So far, although there are many research on dividend policy and empirical analysis of the results in the Western developed countries, these conclusions are not an agreement.Fisher (1976) saw the dividend policy as a "dividend puzzle", and Brealey and Myers, etc. listed the dividend policy as one of the top ten financial problems. Moreover, these conclusions are based on the mature markets of western developed countries.The late start in China's capital market, despite the rapid pace of development, but experienced only a short period of two decades, there remain many drawbacks compared with developed countries, our capital market is not mature enough, not perfect, and thus this paper, we study the factors that affect our dividend policy based on the reality of our situation and the particular market.On the other hand, we find there are some similar factors on dividend policy affecting a listed company, so this article from the non-ferrous metals industry this perspective, to explore the impact of dividend policy of the factors listed companies. The reason selecting non-ferrous metals industry is that it although not as steel, coal industry is the pillar industry of national economy, but as a strategic material and production materials are basic materials for national economic development. To study this effect from the following six chapters of listed companies in China Nonferrous Metal Industry Factors Affecting Dividend Policy:The first chapter includes four sections, section I, summarizes the research background and significance of this; Section II describes the framework of this article; Section III, describes the research method used in this article, that the use of Excel, E-views statistical software for this selected sample of 28 non-ferrous metals industry companies sectional data, correlation test and the generalized least squares estimation, a comprehensive analysis of non-ferrous metals industry to find the factors affecting dividend policy; Section IV, this article may be lack of innovation and there are some drawbacks.Chapter II, including four sections, section I, summarizes the status of our dividend policy on the relevant literature review; Section II, from profitability, ownership structure, industry factors and company size, summarizes literature review on factors affecting dividend policy; the third quarter, summarizes literature review about market response to dividend policy;the fourth quarter, summarizes foreign-related literature review based on signaling theory and agency cost theoryChapter III, including the three sections, describes the traditional school of thought on dividend distribution theory and the modern school theory, theory of traditional schools, including:"A bird in the hand", MM theory and the theory of taxation; modern school theory include:Customers effect theory, signaling theory and agency cost theory; Section II introduces the four basic principles to be followed dividend distribution, that is the principle of distribution according to the law, the principle of capital preservation, the principle of full protection of the interests of creditors and the interests of both multi-and long-term Principles; Section III introduces the four basic forms of dividend policy and their advantages and disadvantages, namely:residual dividend policy, fixed or growing dividend policy, the fixed dividend payout ratio dividend policy, and low normal Extra dividend policy.Chapter IV, including the two sections, section I, an overview of non-ferrous metals industry, first defined the definition and classification of non-ferrous metals, and secondly, summarizes the characteristics of non-ferrous metals industry from four aspects,such as the financial attributes, the layout of non-ferrous mineral resources, non-ferrous metals as a strategic reserve materials and the global market structure, and finally summarizes the operation of non-ferrous metals industry from 2005 to 2010; section II, through the analysis of samples from 1999 to 2009 about dividend distribution, summed up the status of dividend distribution and problems on listed companies in China's non-ferrous metals industry.Chapter V, including the four sections, Section I, from the economic environment, law and policy constraints and the degree of development of the securities market describes the dividend policy of listed companies in the external environment; II, analyses factors of listed companies in the non-ferrous metals industry in dividend policy from the liquidity and the ownership structure;III, analyses the company's financial position from the size of the company, shareholders equity, and asset-liability ratio, and then analyses the company's own capacity from the profitability, operating capabilities and ability to grow; the fourth quarter, analyses affecting factors in dividend policy from the stock price, earnings and net assets per share, earnings per share and net cash flow per share.Chapter VI, including the three sections, section I illustrates the variable selection and sample processing; II, model assumptions and model building; Section III, empirical results from the model,the empirical conclusions drawn are: the company's total asset growth, asset return on net assets and earnings per share and dividends are positively correlated, and then makes some relevant policy recommendations about dividend policy in companies of china's non-ferrous metals industry.