Research On The Influence Of Financing Cash Flow On Dividend Distribution Policy

As one of the company’s major financial decisions, dividend Policy is a long-concerned topic in the public and academia. The policy refers to the allocation of surplus, it affects the company’s future development and the needs of the stake-holders which is an important problem in company. The development of western developed capital mark has already been more than one hundred years, dividend distribution policy is relatively mature, there are dividend irrelevance theory, dividend-related theory, signal transmission theory and agency theory etc.The development of China’s securities market has only been twenty years, laws and regulations are not perfect, development of the capital market is not mature, listed companies often don’t pay dividends or unusually pay high cash dividends, dividend distribution market is chaotic.Dividend articles generally study the motives of dividend distribution, influencing factors and distribution methods at home and abroad. This article researches the influence of financing cash flow on dividend based on the influencing factors of the dividend distribution. As one of three cash flow, financing cash flow plays an important role in the company’s development and even affects the dividend distribution policy. The dividend distribution in this article refers only to the allocation of net cash dividend. Whether financing cash flow impacts on the allocation of net cash dividend and what kind of influence will be produced are the studying contents of this article. There are five chapters which is applied to the empirical analysis in the fourth chapter, this article reveals positive impact of financing cash flow on dividend distribution policy and the results have some guiding significance.