Research On The Cash Dividend Policy Of Chinese All-tradable Listed Company

Dividend policy is a modern company financial management activities in one of thethree core content, is the company financial management important link, it is not justa simple problem of profit distribution, it is in close contact with the interests ofshareholders, creditors and company image. In a specific market conditions, as thecapital market microstructure based listed companies, adopt what kind of dividendpolicy in order to achieve the maximization of corporate value has been a focus ofconcern.In order to eliminate the disadvantages of dual ownership structure, our countrybegins the non-tradable share reform from2005. Today, the non-tradable share reformhas been basically completed, the limited shares of some companies began to appearon the market circulation since2008. the companies with no limited shares increasedgradually, there are a lot of companies to achieve full circulation in2010. Thedevelopment of Chinese capital market has entered a new period. Also for the study ofdividend policy provides a new background.The research object of this paper is cash dividend policy of the listed companieswhich have realized the full circulation, the selected samples are these companieswhich begin the non-tradable share reform in2005and achieve full circulation in2009. Starting from the present situation, analysis of these samples the fundamentalcondition of the company, found that the company has the following severalcharacteristics: few companies distribute cash dividends, the number of distributingcash dividends has increased after achieving full circulation, but the quantity ofincreasing is not obvious; the level of cash dividend is still low.The abnormalsituation of distributing cash dividends is much serious; dividend distribution invarious forms. Then from the view of agency cost point, study the companies underthe background of full circulation with Empirical research methods. The agency costis divided into three aspects: agency cost between shareholders and management layer;agency cost between shareholders and creditor; agency cost between largeshareholders and small shareholders. Then selected indicators to measure the agencycost, through these indicators to explain the cash dividend policies. At theend,through the empirical results we know that agency cost factors directly affect thecash dividends policies, on the other hand, cash dividend policies can also effectively reduce the agency cost, and in the full circulation background, this relationship ismore obvious.