The Study Of China’s A Share Listed Companies’ Factors

Dividend policy, as one of important components of financial policy, is always the focus of investor and scholar’s attention. As the main way of dividend, Cash dividends is an important way for listed companies to return to investors, and it plays a decisive role to cultivate long-term investment philosophy as well as enhance the attractiveness of the market for funds and its own vitality, which can promote the development of capital markets. Therefore, the regulatory authorities in China has always stressed that the listed companies should enhance the cash dividend in the way of linking company’s financing to cash dividend. But existing research find that what regulators has done doesn’t help; only knowing the specific factors which can promote the cash dividend as the return on investment for the investors can be helped to solve the problem.Both the distribution of willingness and the paying level, using the micro, meso and macro variables, are studied in the paper in order to explain the factors what can affect cash dividend.The result shows that the largest shareholder ratio, the company’s lifecycle, the Baker and Wurgler variable, as well as coordination of internal and external governance are positive correlation to the probability of cash dividend. The industry’s confidence level is negative correlation to the probability of cash dividend. The result also shows that the largest shareholder ratio, the company’s lifecycle as well as coordination of internal and external governance have positive effect on the play level of the cash dividend, however, the other variables have not distinct effect on the play level. Based on the conclusions, the study points the corporate governance and institutional investors can be the way to promote the healthy development of capital markets.