Influencing Factors Of Cash Dividends Of Listed Companies

Cash dividends is the main forms of Shareholder’s return, and it is also the index to examinethe listed companies’ refinancing conditions. Appropriate cash dividends can set up good imagefor the company and arouse the investment of the general investors, so as to lay a foundation for along-term development of listed companies. This thesis is under Chinese specific policy andinstitutional background, to discuss the effect on cash dividends of listed companies, and attemptto build cash dividends models, for the sake of furthering perfect our cash dividends theory system,and bring forth the scientific, systematic and practical advice of cash dividends for improvingcompany’s market value.At first, this thesis reviews the history and legislation of cash dividends from1991to2012,and analyzes continuity features of cash dividends. Then, the author also studies industrydistributed characteristics and regional distributed characteristics. Next, based on domesticmacroeconomic trends, the author makes use of macro economic data from1998to2011to findout the cause and result relationship between cash dividends gross per year and macroeconomicfactors. Finally, the author selects listed companies either paying cash dividends or not payingcash dividends from2009to2011as samples and studies them from micro financial perspective.In the empirical study, the author adopts a two-step analysis: first factor analysis and then multipleregression, to construct cash dividends models for different industries respectively, with the aim toexplore whether there are differences of cash dividends in different industries.The results show that: Firstly, initiatives of the Commission play a role in affecting listedcompanies to pay more cash dividends. In addition, there is no shortage of companies whichcontinuously implemented dividends, but there are also companies which did not pay anydividends. The author finds that cash dividends are distributed differently in differentiatedindustries, but geographical distribution follows no regularity. Secondly, cash dividends are indeedsubject to a number of macroeconomic indicators, and dividends will give feedbacks to some ofthem. Through Granger test, the author obtains that the total domestic economy, the size of thedomestic credit, money supply and inflation rate are incentives leading to the change of the size ofmarket cash dividends. But the scale of cash dividends has no effect on the one-year lending rate,and there is no causal relationship between the two. Thirdly, the influences of micro-financial factors on cash dividends are different in different industries. The author finds out that factors likecompany size, profitability, per share index will influence the amount of cash dividends. Theauthor works out three cash dividends models belonging to different industries. In real estatemodel, per share index, the size of the company and earnings are the most prominent factorscontributing to the rate of cash dividends per share. In wholesale and retail company model, thereexists no significant relationship between debt paying ability and cash dividends per share;however, per share index contributes the most to dividends. In manufacturing company model, pershare index plays the most important part in contributing to cash dividends per share, but there isno significant correlation between ownership concentration and cash dividends per share.