The Correlation Between The Dividend Policy And The Future Operating Results Of China’s Listed Banks

The study on the relationship between the dividend policy and future operating results of China’s listed banks is an important topic with theoretical value and practical significance. In the context of a new pattern of international financial integration of the world economy and the influence of the international financial crisis, China’s banking industry has ushered in unprecedented opportunities for development. The number of bank listed companies will increase year by year. As one of the three financial policy of listed companies, dividend policy is a starting point to explore the impact of future operating results of listed banks. Thereby improving the existing dividend policy to raise bank operating results undoubtedly has a very important significance.This article discussed the relevance of the results of operations and future dividend policy of China’s listed banks from an empirical perspective. After Summaring related theory of domestic and foreign empirical literature dividend policy and operating results, I first analyzes the status quo of China’s listed banks in the dividend policy and operating results. And in accordance with the dividend policy in the West like the signal transfer theory and agency costs theory, I proposed two assumptions proposition about dividend policy of listed banks in China and the future operating results. Namely:Assuming cash dividends, stock dividends and the bank’s operations results in future have positive correlation; Assuming reserve to share capital and the bank’s operations results in future have uncertain proportional relationship. Then, select14listed banks in the year from2008to2011as sample, let the EPS(Earnings per Share) reflect the operating results of listed banks, let per share cash dividend, per share stock dividend, the number of per share into share capital reflect the dividend distribution policy of the listed banks. Then establish the fitting regression models between them and use the statistical analysis method to explore the relationship between the dividend policy of these listed banks and their operating results in2008to2011. Using the analysis results to verify these hypothetical propositions. And the conclusions are:the correlation between the results of operations and the distribution of dividends of listed banks is positive. The issuance of cash dividends will make banks increase in earnings per share, they have positive correlation;There is no necessary link between the stock dividend and the operating results of listed banks. Finally, According to the status quo of China’s listed banks dividend policy, managers of listed banks can put forward policy recommendations.