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Study On Chinese Listed Companies’ Cash Dividend Policy

Posted on:2014-10-05Degree:MasterType:Thesis
Country:ChinaCandidate:T T LiuFull Text:PDF
GTID:2269330428458305Subject:Accounting
Abstract/Summary:PDF Full Text Request
Dividend policy has been the focus of the investors and the capital market as a one of the core financial management policy. The most important policy of dividend policy is distribution policy is the cash dividends policy, proper cash dividends of listed companies can give investors real returns and predict the potential investment value, it is a common product of good operating performance and corporate governance. The listed company distributes cash dividend to investors, it signals very strong information to investors from the managing group of the listed companies, as also a method of conveying their own profitability and developing foreground to capital market. Reasonable cash dividend distribution policy can not only improve the image of the listed companies responsible for investors, obtain goodwill, enables companies for investment after equity refinancing are required to stimulate the subscribe of investor enthusiasm, so they can get more financing goals, but also can build up investor confidence in the company’s future development prospects, so as to create a favorable financing environment for the company, helping the company achieve long-term stable development. Chinese stock market was established in the199O’s,it developed very rapidly in the past20years. Since the reform of non-tradable shares, the number of distributing cash dividend of listed companies in our country is rising year by year, the cash dividends level gap is gradually reduced compared with the western developed capital market. However, the stock market also brought a series of problems with its flourishing and the process of internationalization, such as inadequate corporate governance, poor government regulation, cash dividends lacking of long-term and stability information asymmetry, investors’wait-and-see attitude and so on. This, to a certain extent, blocked the rapid and healthy development of capital market in our countryFor this reason, by selecting a sample of A-share market listed companies in china, based on analyses of overseas and domestic theories and references. This article first considers data of Chinese listed company in1997-2011years as sample data, respectively from four aspects including cash dividend payment wishes、 cash dividend payment level、 the stability of cash dividends and non-virtuous dividends payout. The results shows that: The proportion of payer of Chinese listed companies has gone through obvious stages, the cash dividends payment will of listed company gradually increase; Chinese listed companies are generally lower in the cash dividend amount per year on average, share-split reform prompted Chinese per share cash dividend level steady rise; there are extreme dividend payments behavior of high cash dividend、exceptionally low cash dividend and finance dividend. Then we started from the angle of listed company cash flow and the life cycle perspective, five hypotheses were brought forward and designed variables, studied the cash dividend payment will and cash dividend payment level, the writer innovatively chose free cash flow per share shareholders as one of the explanatory variables. The empirical results indicate that, The equity rate of the large shareholder has positive impact on the cash dividend payment willingness and pay level, Institutional investors have no impact on either cash dividend payment willingness or cash dividend payment level; Free cash flow per share shareholders does not encourage management to pay cash dividend, but it has a promoting effect for cash dividend payment rate.
Keywords/Search Tags:cash dividends, cash dividend payment willingness, cash dividendpayment rate, extreme dividend payments
PDF Full Text Request
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