Research On The Dividend Payout Policy Of The Listed Company In China

The dividend payout policy,as one of the most important financial decision inone company， is also a classic theme in the field of corporate financetheory.Although，during the last half one century，dividend payout theory hasevolved gradually，it is still up in the air,and leads to a lot of controversy，in practice，it came to the so-called “dividend puzzle”.A company must balance the incomealready achieved and the return that will be given back to the shareholders,so thepayout-policy of a listed company can play an important role on the creation of thevalue of a company,and the maximization of shareholders’ wealth.And then,thepayout-policy will affect the stability and the function of the capitalmarkets,especially for the transition of the market economy system in our country.In practice, dividend payments in the capital market of China, have obviousdifferent characteristics with the mature capital market,in general,payout level is notso high, the stability and continuity of dividend is too poor, and there exists certainstructural distortions. Though regulators have saw this problem, and introduced a lotof mandatory regulations,it ramains to see how these measures work.In somedegree,the regulatory policy can only become the constraint boundary,not thefundamental drive of a listed company to pay dividend.After all it should become a company’ owm financial decision to pay dividend in a mature capital markets.Therefore,we should answer in the special capital market structure of china,whatdetermine a company’ willing to pay dividend,also,what determine the dividendlevel.This paper tries to find out the current situation of cash dividends of listedcompanies in China,then,analysis the problem of cash dividends of listed companiesin China，focuses on the empirical analysis of listed companies’ dividend payment.Through the study of these problems, we lookforward to standardizing the dividendpayment behavior of listed companies in China, and improving the governance oflisted companies, providing advice to build a reasonable and healthy capital system.This full artical contains the introduction and four chapters.The introduction part expounds the background and significance of the selectedtheme,the article’s main research content and research methods,as well as thelimitations and possible innovation.The first chapter, the classical dividend policy theories and literature review.This chapter firstly introduces classical dividend policy theories in corporate finance,the main viewpoints of each genre are corresponding, this will lay the theoreticalfoundation for the following empirical research.Secondly, this part introduces themajor empirical research literature about the dividend payments at home and abroad.The second chapter, the current level of dividend distribution of listed companiesin our country and some problems exists. This chapter will systematically introducethe dividends of listed companies in China in a longer time span (1990-2010, a totalof20years) and horizontally compare with the developed countries mature marketsand emerging markets such as Hong Kong, Singapore.So that,we can fullyunderstand the cueerent situation of dividend payment in our country.Firstly, weintroduce China’s overall level of dividend;Secondly, I analysis the continuity andstability of dividend payment;also, I analysis the structural characters andconcentration of cash dividend. On the other hand, I review the problems exist in ourcapital market; The last is the summary of this chapter.The third chapter: an empirical analysis of the determinants of dividend policy oflisted companies in China. The empirical analysis focus on the key factors of cash dividend policy of listed companies in China. Selected datas last6years from2006to2011，I use Logistic regression function model, and set the dependent variable"whether cash dividend of listed companies is distributed ", the selected independentvariables include: company profitability, growth, the company scale,as well as thedebt paying ability.Then, I use the single factor analysis and multiple regressionmodel, set "the amount of cash dividends" as the dependent variable, and study theinfluence of such variables on the cash dividend payment level and sensitivity level.The fourth chapter: research conclusion, limitation and future research prospects.This chapter summarized the main research conclusion of the article, and point outthe limitations and future research prospects.