An Empirical Study On Influential Factors Of Listed Companies Dividend Policy In China

The dividend policy of listed companies is the choice between in the dividendpayments and the distribution of the retained earnings, is one of the listed companies inChina’s distribution policy, and is one important way for many investors to get return.Bythe way, Corporate governance is a mechanism-a balanced of the stakeholdergroups.Many experts and scholars(at home and abroad) study the corporate governancestructure and dividend policy from many angles.Given that the capital markets alwayswith asymmetric information,and the transparency of the non-efficiency factors,therefore,take the corporate governance structure and dividend policies into a common system forempirical research, it will have a remarkable theoretical and practical significance. Thispaper integrates the relationship between dividend policy and corporate goverancein-depth,in order to be able to find a acceptable and simple way to explain the dividendpolicy of listed companies in the stock market.In this paper, get the theory of dividend policy and corporate governance united, tocounter the unique dividend policy of China’s listed companies and the characteristic ofthe corporate governance structure, using the date from2008to2010of our listedcompany, analyze its disclosure of financial statements, annual reports, to collect thesesamples listed company profitability, leverage capacity, free cash flow, company size etc.indicators, establish a logistic regression model,use the SPSS17.0measurement softwareto analyze the test data，models, analyze the relationship of the product marketcompetition, board structure, ownership structure etc.corporate governance structurevariables and the dividend payout ratio, and all three will have what impact to dividendpolicy.The empirical results show that the corporate governance structure of listedcompanies in China plays a important role in the dividend payment:Firstly，there is asignificantly positive relationship between ownership concentration degree and dividendpayout ratio，the ownership percentage of the largest shareholder and the top fiveshareholders’ ownership have a positive relation with dividend payout,which indicatesthat the major stock holder prefer cash dividend; Secondly, the board size is positivelyrelated to the dividend payout ratio，board and Chief executive officer (General Manager)serves also positively correlated with the dividend payment, explain that the board oflisted companies in China can play a corporate governance role, but the number of board meetings is not related to the dividend payout ratio,and the proportion of independentdirectors is also not related to dividend payments,so the board of directors of listedcompanies in China can not increase the level of corporate governance through theactivities of the board of directors;Thirdly,product market competition and the dividendpayout is negatively correlated, that is, the greater the intensity of product marketcompetition, and more the listed companies is not likely to pay dividends;Finally,their issignificantly positive relationship between the company’s profitability,company size, freecash flow and company growth and dividend policy,but leverage capacity is negativelycorrelated to dividend policy, these control variables are more significant, indicating thatthese indicators to control the development and implementation of the dividend policy.In addition, on the basis of the theoretical analysis, explain the status of the dividendpolicy of listed companies in China and the causes of elaboration;Combined withempirical research results,summarized some useful lessons for China Securities Market,guide investors to adjust investment direction and strategies, provide a reference for therapid development of China’s securities market.