Analysis Of Dividend Distribution Policy In Listed Company Of Small And Medium Enterprise Board In Sichuan Province

During the last decade, stock market of China experienced development and most of excellent large state-owned enterprises have become the listed companies. In recent years, Small and Medium Enterprises (SME) come to the primary new ones in listed companies. According to this trend, Shenzhen Stock Exchange created an independent SME Board, major in SME. There are many features, such as small scale, rapid growth, low stability and private holding mainly and so on, in SME. More market focus was placed on SME and more influence of that was shown, therefore, dividend distribution policy in SME becomes to the focus of the stock market of China.The research of dividend distribution policy in China is so later than that in western mature stock market. Based on referring to systematic policy studies in western countries, dividend distribution policy in our country has own characteristics and obtain some achievements.It is a representative of Sichuan province in analysis of dividend distribution policy, because of Sichuan province has the most active economy in west area of China and many SME. Analysis of dividend distribution policy in SME of Sichuan province is not only helps to SME in Sichuan, but also helps to study and research SME in other provinces in our country. Through generalizing and analyzing dividend distributions policy in22SMEs, our finding showed that there are arbitrary, unstable and discontinuous features in SMEs of Sichuan province. Those characteristics is not help to plan and usage funds, to coordinate stakeholders, to develop stably and sustainable in a long time, and to lead the public invest correctly, so weaken the listed companies’influence as the public enterprises. There are some reasons might be involved in, for example, fluctuation of earnings, imperfect management, unreasonable ownership structure, not enough awareness as the public company, lack of guidance and supervisor in law and policy, private nature of listed company influencing dividend distribution policy largely, and lack of correct invested view in the stock market. Accordingly, some standard suggestions have showed in this article. The listed company should pay attention to adjust dividend distribution policy, strengthen sense of responsibility as listed company, do strategic financial planning well, develop long-time dividend distribution policy, optimize the equity structure of listed company, impose the governance of listed company, strengthen the construction and guide of relative law and regulations, and cultivate rational invested opinion in the stock market.