The Research On The Influence Of The Profit Quality On Cash Divided Payment

When the company formulates the dividend policy, various factors will be considered,the profit level is one of the very important factors, this has been confirmed by manystudies. I think, the profit in the book is only a measured result based on accrual basis, theinternal quality of which is relatively crucial, studying the influence of the profit qualityon the dividend policy will be more meaningful. Because cash dividend is the main form ofdividend distribution, and to pay cash dividend will make the cash really flow out of thecompany, the poor performance companies are difficult to imitate the good performancecompanies to pay high cash dividend, it can be said that the cash dividend payment levelcan indicate a company’s true operating conditions to a certain extent. Therefore, thisarticle will focus on the influence of the profit quality on the cash dividend payment.This paper establishes the comprehensive evaluation system about the profit quality ofChinese listed companies according to the characteristics of the profit quality firstly, andevaluates the profit quality comprehensively by factor analysis method. Then do somedescriptive statistical analysis about evaluation results, educing the overall situation of theprofit quality of listed companies which pay cash dividend and not pay cash dividend.Finally, take the extracted factor variables（including profitability, growth, liquidity andpersistent）as the proxy variables of the profit quality which is the independent variable,study the influence of the profit quality on the payment level of the cash dividend by themultiple regression analysis method. Conclusions of the study are that: the profit quality ofthe companies which distribute cash dividend is higher than the companies which do notdistribute cash dividend, the profit quality of the companies which pay high cash dividendis higher than the companies which pay low cash dividend; there is a positive correlationbetween the payment level of cash dividend and the profitability, growth, liquidity andpersistent of the profit, among which the payment level of cash dividend has a significantpositive correlation with the profitability, growth and liquidity of the profit, but the positivecorrelation between the payment level of cash dividend and the persistent of the profit do not pass the significance test. The innovations of this paper are that: establishing thecomprehensive evaluation system about the profit quality of Chinese listed companies;studying the influence of the profit quality on the cash dividend payment of Chinese listedcompanies, which is based on comprehensive evaluation results about the profit quality.