China's Pharmaceutical Industry Listed Companies Cash Dividend Policy Influence Factors Of The Empirical Research

Dividend Policy is one of the three major concerns in modern corporation financial management. Proper dividend Policy could be helpful to establish a favorable company image, encourage the investors’ enthusiasm for the constant investment and build solid base for the extended and stable development of company. Due to the late beginning, Chinese stock market is not mature. Research on this problem will help the stock market develop healthily. In this context, this paper analyzed that which factors will appreciable affect the pharmaceutical industry’s cash dividend policy.Firstly, the significance of cash dividend policy and its current research situation were fully expounded. Then based on the analyses above pharmaceutical industry, the empirical model of cash dividend policy was built. With data from Chinese securities exchanges from2006to2010, we get the following empirical results:When the first big controlling shareholder is the national, the companies tend to extend the cash dividend; A listed company’s first big shareholders preference higher cash dividend, thus encroach on the interests of small and medium shareholders, but the second to the fifth big shareholders will supervise them; The company’s solvency profitability and the company size will significantly impact on cash dividend policy. In the end, aiming at the agency problem embodied in the dividend policy, the author has advanced some proposals which will help build standard dividend policy and promote the capital market’s development.