An Empirical Study Of The Growth Of Companies Listed On GEM Affect Its Dividend Distribution Policy

The Growth Enterprises Market(GEM) in China was founded in October30in2009.GEM mainly provide more convenient ways to solve the finance problems for small and medium-sized enterprises, high-technology enterprises and new enterprises. The companies of GEM usually are of highly development,strong profitability, high growth. Meanwhile, dividend policy which is one of the three important financial managements of a company,can provide a more stable surrounding and more chances for growth. There are many factors have influences on dividend policy, such as profitability, growing chances, and so on. The passage means to discuss how the growth influent the dividend distribution policy, that means whether the growth have a effect on the setting of the dividend distribution policy and offer a solution to solve the dividend puzzle.This passage analyst the companies, these on the listed company of the GEM of Shenzhen Stock Exchange. Based on the completely yearly reports of the selected153companies from2010to2012, I select the indexes of rate of capital accumulation, asset growth rate, Operating profit growth rate, net profit growth rate, earnings per share growth rate and growth rate of return on net assets and net assets per share growth rate, which are often used to evaluate the growth ability, and evaluate the growth of GEM companies with factor analysis method. Then the application of statistical methods, such as factor analysis, regression analysis, comparative analysis, analyst the influence of the growth to the dividend distribution. According to the analysis, I can draw the conclusion that the growth of the companies of GEM are in the positive correlation with dividend distribution policy, and, compared with the low growth company, the high growth company can provide more stable and sustainable dividend distribution. The passage gives the correlating suggestions and advices from the company of GEM, the investor and the government, and these suggestions,hopefully, can be useful. At last I point out the shortcoming of the passage and the further efforts needed.