What Effect The A + H The Dividend Distribution Policy Of Listed Companies

This thesis investigates both the macro level and micro level factors’ effects on company’s dividend policy. Starting by analyzing the dividend policies of all A-share companies, several firm level influencing factors have been confirmed. These include profitability, dividend continuity, growth opportunity, free cash flow, the largest shareholder’s holding percentage and debt level. All these factors have significant influence on company’s dividend policy. Then the thesis focuses on the A+H companies and their matched pairs from A-share market to investigate the influence of market nature (macro level factor). Finally the thesis explores which level factors are more important for company’s dividend policy.The major findings are:firstly, the H-share’s percentage is not a determinant for A+H companies’dividend policy; secondly, the cross-listed feature doesn’t directly influence the companies’propensity to pay or payout ratio, but it will directly influence dividend yield; thirdly, the cross-listed feature will interact with some firm level factors and influence dividend policy indirectly; finally, an event study of market reactions from both A-share market and H-share market to A+H company’s dividend announcement is conducted. The result shows that the reactions from different market are indifferent from each other. It further proves that the macro factor is not the primary concern for dividend policy, but the micro factors are.