A Study On Cash Dividend Distribution Of Listed Companies In China

The policy of cash dividends has constantly been the main concern of stockholders, corporate administrators and supervisors; and also always been the research hotspot of the scholars domestic and overseas. A large amount of theories have already centered on the dividend puzzle from multi-angle and multilevel. But the corporate life-cycle theory has always been the main stream viewpoint about cash dividends theory in western societies. The main point of view of the theory is that corporations will make the corresponding cash dividends decisions according to its different life-cycle phase.This paper firstly conducts data analysis on the current situation and the principal characters of cash dividends of Chinese listed companies and those who haven’t implemented cash dividends policies. The result shows differences between whole plate and distinguished plate of Shanghai and Shenzhen A-shares listed companies. Under this circumstance, the differences exist on several aspects, such as cash dividends distribution and what way to issue cash dividends and the characteristics of cash dividends distribution, etc. Secondly, the paper starts from the corporate life-cycle theory, analyzes the features and indexes of the corporate, proposes hypotheses, builds a model and uses the model to test and verify the relationship between the inclination of cash dividend distribution and corporate life-cycle; deliberates whether corporate life-cycle can influence the distribution of cash dividends or not. The research discovers that whether Chinese listed companies pay cash dividends or not present the feature of life cycle. Meanwhile, the research shows some kind of otherness between main board market and growth enterprise market (GEM). Next, the paper chooses out some base samples from Chinese Shanghai and Shenzhen A shares corporations who have issued cash dividends and applies statistic analysis to analyze those samples, brings forth some hypothesis and builds models to verify the relationship between dividend payout ratio and corporate life cycle; to discover the impact of the life cycle on divided payout level of Chinese listed corporations. The research result reveals a huge difference concerning the essential factor which affects main board markets and GEM:the return rate of capital invested is the key factor for the former; whereas, the asset size and asset-liability ratio are the key factors for GEM.Lastly, based on the analytical result of abundant solid evidences, the paper puts forward some beneficial polices and proposals which can promote the optimum development of Chinese stock market.