Empiircal Research Of Cash Divedends Payment Of Listed Companies In A Share Market From The Angle Of Catering Theory Of Dividends

Optimizing the allocation of resources is a basic function of the capital market.Protecting the basic interests of the investors in the securities market is the basis oflong-term prosperity. Whether from the perspective of financial theory, or from the practiceof mature markets, a good dividends payment system should give full play to theinvestment function of the capital market, and should enhance the efficiency of the marketallocation of resources. But in recent years, the dividends payment of domestic A-sharesmarket has been controversial, the company’s dividends willingness to pay, dividendsamount and dividends way are difficult to reflect the company’s actual operating status. So,what causes the appearance of this kind of dividends situation? How to explain thesephenomena reasonably?Based on the realistic background and previous research achievements, from theperspective of the theory of corporate financial behavior, this paper researches severalphenomena such as lower level dividends, the existing structural inversion, financing andhigh level dividends co-existingly, the existing catering dividends in A-shares market.Firstly, this paper summarizes many areas of research achievements domestically andabroad about the behavior financial theory and dividends policy. Meanwhile, we brieflyintroduce the research ideas and contents, research methods and innovations. Secondly,after analyzing the historical dividends data of domestic quoted companies in A-sharesmarket, this paper measures dividends level and dividends difference of various individualfrom such perspectives as percentage of dividend company, dividend payout ratio,dividend yield, dividend ratio of sales, industry differences of dividend and generation gapdifference of dividend. Meanwhile, we point out main problems of dividends policy ofdomestic quoted companies in A-shares and analyze the causes of these problems. Thirdly,this paper systematically introduces the developments and main models of behaviorfinancial theory, especially about catering theory of dividends. Meanwhile, we explainvarious dividends phenomena of quoted companies in A-shares market using cateringtheory of dividends and establish the basis for latter models demonstration. Fourthly, usingthe sample data of quoted companies in A-Shares market, this paper makes multiplehypotheses and sets up five Logit/Logistic models respectively to process statisticalsignificance testing of the above assumptions. Meanwhile, we obtain many inclusions: forthe quoted companies of the higher level of ownership concentration, their dividendspercentages and amounts are higher, especially the high levels of cash dividends (Mostly, these dividends policy (especially cash dividends) is largely catering to the needs of the bigshareholders). Finally, this paper considers the dividend policy change and the futuredirection of development in the A-shares market from several facets such as thesupervision, the quoted company itself and investors. And it gives the relevant policyrecommendations, including encouraging and guiding quoted companies to establishsustainable, clear, transparent cash dividends policy and decision making mechanism;creating a good tax environment and promoting the quoted companies’ long-term stabilitybonus; developing long-term investors and improving the incentive and constraintmechanism of dividends; strengthening corporate governance and correcting the twoinversion dividends structure of the quoted companies in China which can realize theoptimization of the dividend main structure.Of course, the research in this paper is analyzing just from one angle which may notbe enough comprehensive and thorough. During the research of the dividend policy, weare facing a complete and complicated stock market which has many factors. There may beall kinds of noise which can influence the company’s shareholders, directors and managers.So, it can affect the company’s dividend policy and the cash dividend distribution andaffect the stock profit tax adjustment function. At the same time, the Chinese stock marketstill belongs to emerging market which has many policy trails and there are many factorsinfluencing the cash dividends distribution in quoted company. Hence, we still have manyproblems in A-shares market for further studies in the future.