A Study On Impact Factor Of Dividend Policy About Listed Company

Dividend policy, financing policy and investment policy constitute "three main finance mangement policy of modern company". On one hand, dividend policy shows a company’s profit of last year directly; On the other hand, dividend policy provides funds for the adjustment of capital funding, and impacts business operations at the same time. Especially, dividend policy is a persuasive signal for the market to assess a company’s potential value. It will attract a investor’s interest or hit a investor’s confidence for his invest judgment. Therefore, choosing appropriate and reasonable dividend policy has irreplaceable significance for a company to stabilize the market sentiment and achieve strategic objectives.In China, a large amount of listed companies restructure from state-owned enterprises. And the largest shareholder of a company can control over the company absolutely.They prefer to put their own interests at first and ignore the interests of minority shareholders when formulating dividend policy. Moreover, many listed companies are reluctant to respect the market rule. As they make their decision without caculating carefully, choose dividend policy lacking of continuity and keep the dividend payout rate in a low level. Worse still, many listed companies refuse to distribute dividends whatever they make profit or not. Therefore, it is of great importance for us to analyze the impact factor of listed company dividend policy and form systematic theory about dividend policy. Only in this way can we guide a company operating continually, standardize the market order and promote the development of economic. In this paper, I select listed companies in Zhejiang province as example to slove this problem.