Research On Cash Dividend Policy Of Financial Listed Companies In China

Since1956Linter has created "smoothing model", the research of dividend policy has began. In1961,with the emergence of "M&M Theory", dividend policy came into a new era. However, as the assumptions of the "M&M Theory" is too strict, there is no perfect capital markets that the theory assumed in the world.So, the scholars gradually went off the assumptions of the "M&M Theory", and then established the different tax theory, customer effect theory,agency theory.signaling theory which are more close to reality. In the dividend of behavior finance theory,the western scholars also take into the psychology, sociology and other disciplines, then had a more comprehensive and in-depth explanation of dividend theory.As stock market of our country established in these years, the scholars in our country mainly used the existing western dividend theory to explain and verify the dividend policy of the public company. But with the economic globalization,China’s stock market has also established30years, which have carried on a series of reform,such as the establishment of Growth Enterprises Market, reform of non-tradable shares, securities margin trading and so on.By2012, the share of our market has reached22.91trillion, the problem about cash dividend of the public company has drew more and more attention of scholars, regulators, the public companies and investors. Especially the factors that affect dividend policy of listed companies in China became a hot issue in academic, but in these studies, financial companies because of the particularity of its industry are excluded from the scope of research object. However, as China’s financial system developed, there are more and more commercial Banks, insurance companies, securities companies in the stock market. Fluctuations of their share price will have a significant impact on our capital market, therefore, whether to regulate cash dividend policy of the stock market or to improve the capital market in China, studying the cash dividend behavior of financial companies in the stock market is important.So this paper adopts many methods, such as documentary method, statistical analysis method, empirical method, to analyze cash dividend policy of our country’s financial company.The framework of this paper as follows:(1)Based on the domestic and foreign research,the paper give, a comprehensive description of dividend policy theory.(2)Through the statistical analysis dividend policy of financial companies in market, I got three characteristics of the companies’ cash dividend behavior.(3)I analyze the factors which influent the cash dividend of financial company with statistical analysis method and empirical method. In terms of theory, the factors influencing cash dividend policy of financial companies in China mainly include the policy factor, shareholders factors, internal factors; In addition, due to the particularity of the financial industry, its capital structure, opacity and strict industry regulation characteristics will also impact on cash dividend distribution behavior.(4)According to the result of above theoretical analysis and empirical research main conclusion, I put forward my suggestions from three aspects.The innovations of this paper as follows:First, In the past, the domestic scholars who studied the effect of cash dividend policy mainly research all the public companies in the stock market, in recent years, there are many scholars made a special study in different industry, but most of them focused on real estate, resources etc, not involved in the finance. This article innovativly takes financial listed companies as the research object, studying its the cash dividend policy. It is not only beneficial to understand cash dividend policy of the A-share market listed companies, also will provide theoretical and practical support for regulators to make laws about the cash dividend policy.Second, in this paper, I use theoretical and empirical two methods to study the factors of the cash dividend policy of listed companies.Compared with other domestic scholars only adopt one method to carry out the research, I have a more comprehensive analysis of the influence factors of the financial listed,company.In this paper, the main shortage lies in: First, in recent years, behavioral finance researchers begin to pay close attention to this field, they introduce behavioral science, sociology, psychology and other disciplines of knowledge to explain doubts and problems of dividend distribution policy. But this paper applies the method of economics to analyze financial listed companies’cash dividend policy, and fail to introduce the part of the frontier theory research.Second, due to the limitations of the econometric research level, I think the empirical analysis also has more space to think. I believe that the newcomers will have more in-depth research in this field, thus will more comprehensively explain the factors influencing the financial cash dividend policy of the public companies in our country.