Study On Affecting Factors Of Cash Dividend Policy Of Company On Growth Enterprise Market

Chinese growth enterprise market was established in Shenzhen Stock Exchange on October of 2009. After eight years’ development, the current situation of dividend distribution in growth enterprise market is quite different from that of main board market. With its characteristics of high risk and high growth, it is widely welcomed and therefore has become the synonym of the dividend distribution policy in growth enterprise market. Especially, the generosity of the cash dividend has drawn wide attention. However, in the mature capital market of foreign countries, the enterprises under developing hardly conduct cash dividend distribution. Therefore, the large amount of cash dividend distribution in Chinese growth enterprise market is definitely inappropriate to its developmental stage, which has been hotly discussed by various institutions and the academic circle. Based on the current situation of growth enterprise market and its differences from the main board market and combining the case study of Enlight Media, this paper analyzes the influential factors of cash dividend distribution policy in growth enterprise market, which is significant both theoretically and practically.This paper aims to summarize and conclude related dividend policy theories, research achievements at home and abroad and combined with the actual situation of GEM dividend policy and set the research of GEM cash dividend as a starting point,internal and external analysis of large sample data to develop GEM cash dividend factor. Case studies on film industry of GEM listed company Enlight Media, through analyzing factors that influences the implementation of the cash dividend policy formulation, analyzing factors of Enlight Media cash dividend policy from internal and external factors, namely financial factors, the proportion of large shareholders, IPO Super raise has become an important reason of GEM listed company management’s dividend policy formulating, enterprise Life Cycle and Securities market regulation also affect the company’s cash dividend policy formulation. Based on the summary of the research and combining the practical situation of Chinese growth enterprise market as well as the case study, this paper proposes some pertinent and feasible suggestions. It is hoped that these suggestions will provide references to the policy-making of relevant departments. Specifically, the suggestions include: the managers of listed enterprises should adopt proper cash dividend distribution policies based on their own operational situation, seeking for long-term benefits rather than short-term benefits; the regulatory institutions should formulate a bonus system different from that of the main board market, giving the listed enterprises of growth enterprise market more autonomy to formulate dividend distribution policies, establish an inquiry mechanism and limit cash executives to resign. At the same time, risk management should be conducted to the super raise funds and more voices should be attached to the middle and small sized investors; investors should improve professional knowledge actively so as to reduce blind investment. It is hoped that some favorable suggestions will be provided to promote the stable development of the enterprises.