The Influence Of Gepgraphical Factors On The Divident Policy Based On Empirical Studies Of Chinese Listed Firms

The modern financial management theory says that dividend policy is one of the main financial research which has significant influence on the interests of the listed company. It is not only one of the important ways to help shareholders of a company to obtain legal income, but also an important way to get investment from the outside. At the same time, the listed companies take the dividend policy to transfer operating condition to the world so as to provide the basis for a stable and sustainable development for the company. Therefore, the formulation of dividend policy and its influence factors are discussed by academic circles as a hot topic.With the research development, the relationship between dividend payments and the geographic location of the companies has caused widely attention of academia. The research of this topic is quite little inboard, but compared with western developed countries, the domestic various regions between economy, culture, politics etc. are much more different between China’s different provinces. So it has big meaning to study China’s listed companies’ dividend and their locations. This paper tries to adopt the combination of theory and empirical methods, with the data of listed companies from 1993 to 2013 to analyze the present situation of the listed companies’dividend system. This article studied geographical factors on the dividend policy by using institutional investors, convenience of financing, regional economic level and degree of regional marketization as aspects. The results showed that:the location of a listed company is closer to a central city, the more positive the willing of paying dividends will be, the more numbers of dividend payments will be and the greater dividends payout will be. In the case of a conflict of free cash flow, located in the central city of the magnitude of the listed company’s dividend relative enhancement; The more,advanced the economy of the location of a listed company is, the more convenient of getting investment, the more institutional investors and the higher degree of marketization is,the more dividend will the listed companies pay; In addition, the influence of other relevant control variables are consistent with the existing literature research, such as:the more development opportunities and surpluses the company has, the smaller of asset-liability ratio, the more stable it is all will make the listed companies pay more dividend..Finally, this paper will contact the research results to the present market policy and based on the problems existing in the security market to put forward some advises to help the development of the security market.