An Empirical Study On Dividend Policy Factors Of SME Listed Companies

Since the small and medium enterprise board was listed in shenzhen stock exchange at June,2004, and chinext was listed at September,2009, the Chinese stock market have shaped the three levels framework of capital market including main board, small and medium enterprise board and chinnext, which promote the profound development of the Chinese stock market. The dividend policy which is one of the most three core area in the modern corporate financial activities, have been the focus attention of the researchers. Reasonable dividend policy could improve the market value of the firm, could make reasonable return for the investment of the investors, could firm the passion and confidence for continued investment. In addition it is the necessary condition to the healthy development of the whole capital market. There is negative effect to the investors'confidence of investment and the healthy development of the stork market at the result of the relatively low dividend policy for a long time of the listed company in the shengzhen and shanghai stock exchange main board. However, the listed companies in the small and medium enterprise board commonly adopt the dividend policy of "high level send and high level cash dividend", which have been chased in the market and focus the attention of investors for its high return characteristics. Therefore, investigating the influence factors to the dividend policy of the listed companies in the small and medium enterprise board may have reference effect to improve the dividend policies in the main and chinnext board.This article initially comment systematically about the present condition of this subject about the dividend policy domestically and internationally. Secondly, through comparing the dividend distribution situation between the listed companies in the small and medium enterprise board and the listed companies in shenzhen exchanges, we describe the main characteristics of the dividend policy of the small and medium enterprise board listed companies. Next, on the basis of the theoretical analysis of the internal and external influence factors in the dividend policy of the small and medium enterprise board listed companies, we choose the 14 quantifiable financial index, and the sample is the 213 sets of data including 71 companies which was listed in the small and medium enterprise board between the January1,2008 and December 31,2008,using Multiple linear regression analysis and the statistical analysis software of SPSS 18, we do a empirical analysis towards the factors effecting the cash dividend and share dividend of the listed company in the small and medium enterprise board. After that we make a conclusion that five index including earning per share, the asset debt ratio,the net cash flow per share, the growth of the net profit and total share capital will have a significant influence on the cash dividend distribution of the companies in small and medium-sized board; the two index about the growth of the net profit and the net asset per share will have a main effect on the share dividend distribution of the listed companies in the small and medium-sized board. Finally, on the basis of the empirical analysis and conclusion, we suggest the relative recommendation about the improvement of the company's dividend policy of the small and medium enterprise board.