Study On The Affecting Factors Of Dividend Policy Of Listed Company On Growth Enterprises Market Board

As the role of the Growth Enterprise Market (GEM) gradually emerges, its extraordinarily generous dividend measures become one of the highlights of the GEM. Over the years, the dividend policy is always the focus and hot spot of researches and discussions for theorists and practitioners. Currently, Chinese researchers who study the dividend policy mostly base on the main board market, however, the characteristics of the dividend distribution for the GEM are different from those for the main board market due to the particularities for both the characteristics and ownership structure of the GEM companies. Therefore, it is necessary to study the GEM to analyze the factors that influence the dividend distribution policy of the GEM in China and thus provide some ideas for investors to rationally judge the GEM dividend informations.In this paper, we comprehensively analyze the dividend distribution characteristics and macroeconomic institution background for Chinese GEM. Based on the related theories of dividend policy in the domestic and overseas, the historical data of the GEM companies and multiple regression analysis method and from the angle of the company characteristics and shareholding structure, the empirical analysis on the factors that influence the dividend policy of the GEM is performed from three aspects, i.e., the willingness of dividend payment, paying level of stock dividend and paying level of cash dividend of the GEM company. The analysis shows:(1) From the company’s characteristic factors, it is found that the profitability, debt paying ability, earnings persistence, investment opportunity and per share capital reserve are positively correlated with the willingness of dividend payment of the GEM company; the growth ability is negatively correlated with the willingness of dividend payment of the GEM company; the correlations between the company scale, cash flow condition and the willingness of dividend payment of the GEM company are not obvious.(2) From the company’s characteristic factors, it is found that the profitability, debt paying ability, growth ability, investment opportunity and per share capital reserve are positively correlated with the paying level of stock dividend of the GEM company; the earnings persistence, cash flow condition and company scale are negatively correlated with, the paying level of stock dividend of the GEM company; the correlation between the company’s ownership structural factors and the paying level of stock dividend of the GEM company is not obvious.(3) From the company’s characteristic factors, it is found that theregulatory factors, company scale, profitability, debt paying ability, earnings persistence and cash flow condition are positively correlated with the paying level of cash dividend of the GEM company; the investment opportunity and growth ability are negatively correlated with the paying level of cash dividend of the GEM company; the correlation between the per share capital reserve and the paying level of cash dividend of the GEM company is not obvious. From the company’s ownership structural factors, the ownership concentration and shareholding ratio of institutional investor are positively correlated with the paying level of cash dividend of the GEM company. The more the ownership concentration is, the larger the control power of the strong stock holder is. It is apt to distribute more cash dividends and this is just the performance of the "tunneling". If the institutional investor has more shareholding ratio, the company will distribute more cash dividends in order to cater the preference of the institutional investor.