Research On Phenomena Of Cash Dividends Clustering Of Listed Companies

As one of the most important financial policy, Dividend policy has been paid much more attention to for half a century. With the development of the stock market, the dividend theories are all kinds of, such as the Lintner model, the agency theory and so on. But so far, none of them could explain the whole puzzle of dividend. In order to explain the phenomenon, researchers began to relax some assumptions of MM theory. Those made much more distributions on explaining dividend policies, though they insisted on their own assumptions, and ignored human behavior bias. Shiner (1984) agreed that unless those elements were taken into model in the future, it is difficult to explain the irrational behavior. Miller (1986) pointed out that behavioral elements played important roles in microeconomics, they could not be ignored, and take the behavioral elements into dividend theories might help to resolve a long standing issue.With the development of behavioral and psychological science, the behavioral theory has been taken into finance studying. With the tools of herding theory and catering theory, the paper is intended to explain some strange dividend phenomena in listed companies. By discussing the relationship between manager behaviors and cash dividend policies, we find that manager behaviors influence the cash dividends. Firstly, the paper begins with literature reviews, contents, framework and the contributions. Secondly, we describe that the strange cash dividend phenomena happening in different industries and in every year. And find that behavioral dividend theories can explain the phenomena in China market. Thirdly, chapter four takes empirical research between behaviors of manager and cash dividends. Finally, the paper makes the conclusion of the empirical research, including the suggestions, the limitations and the directions for future research.In a word, this paper offers evidences that herding and catering behaviors of managers can explain the dividend policies of listed companies. The behavioral elements are important factors which influence dividend payments. According to the above, the paper gives some suggestions to the company managers and the government. All these suggestions base on condition of our country, and raise the paper to higher lever.