Research On The Evaluation System Of Companies’Cash Dividend Capacity Of The SH180Index

Dividend policy has always been called "Puzzle" in western academia. As one of the three core contents of the corporate financial activities, dividend policy has attracted much attention at home and abroad. Because dividend is the return on investment, shareholders are most concerned about the issue. As a continuation of corporate financing activities, an appropriate dividend policy can stimulate the enthusiasm of investors and establish a good corporate image so that it can create good conditions and opportunities for the long-term development of company.After just twenty years’development, the scale of Chinese capital market is more than most countries in the world, ranking second. About seventy million people participate in the stock trading. Compared with the western developed capital market, there are many different characteristics in Chinese stock market. And some oddities still exist which are worth us to explore.This paper firstly reviews some Chinese and foreign literatures referring to cash dividend, then sorts out the literatures from the angle of influencing factors of cash dividend and sums up five major factors. It includes corporation governance, legal and market, corporate finance, last dividend policy and the industry. Among them, the factor of corporate finance is the important factor, so we select7representative indicators to measure. We each choose1or2indexes to describe the other elements,12indexes altogether.We choose162companies in2012of SH180index excluding banking and insurance industry. First, the Logit regression model is used to find which factors influence the decision whether distributing cash dividend. Then, we choose the151companies, which distribute cash dividend, to establish multiple regression model. Stepwise regression is used to research the relationship between cash dividend and factors in the model.It is very important for the research on the evaluation system of companies’ cash dividend capacity. First, there are a lot of literatures about the dividend distribution of cash, but few literatures relate to the evaluation system of companies’cash dividend capacity. This paper studying on the evaluation system of companies’ cash dividend capacity is a new starting point for research, providing reference for the follow-up study.Second, according to different research purposes, different scholars will choose different angles to research cash dividend including corporate finance, corporation governance and external factors etc. Based on the research results of other scholars, this paper sorts out5major factors in order to construct the evaluation system of companies’ cash dividend capacity.Third, this research contributes to the regulatory departments to develop appropriate regulatory policies. The regulatory departments can develop effective regulatory policies after evaluating the capacity of cash dividend.The samples of this paper only include one year data, which is particularity. And the scope of application of evaluation system is relatively narrow. It can be further expanded.