Study On The Effects Of Dividend Payout Policy On The Earnings Persistence Of Listed Companies

Signal effect of cash dividends has been taken into wide research since its initiation,In Western developed capital market, Signal effect of cash dividends has been quite rich empirically proved. But in our country,whether dividends payout convey information of future earnings and profitability remains a considerable debate among the scholars. Because of China is emerging capital markets, its special background of economic system and market environment gave birth to the current situation of the dividends distribution, Compared with foreign mature market, China's securities market shows many different characteristics: there are a large number of non-distribution or little distribution over-savers, but there are some companies of granting ultra-ability cash dividends, the Dividend Policies of companies in our state are lack of continuity and stability. Overall, At home the current ratio of the cash dividends to the net profits account for only about 25%, significantly less than 40% of the mature market, the average annual dividend rate lower than 2%. And stable and continuous cash dividend distribution, not only can reflect the company good earnings quality and the effective internal governance mechanism, also can guide the investors to form the concept of long-term investment, enhance the activity levels of capital market. To guide the listed companies to rationally distribute,Chinese regulators has successively promulgated a series of forced distribution policy. Of which the policy of cash dividend rate is pegged to the qualification of refinancing in2008 is most prominent, for those who not issued or allocation proportion is not up to standard of listed companies are not eligible for public offering, this really emphasized the importance of the cash dividends distribution. So under the half mandatory cash dividend distribution policy of our country, The topic whether the cash dividends distribution surplus signals of Earnings Persistence worth studying,it will have sufficient theoretical and practical significance.This paper research based on the samples of listed companies of A share from2008 to 2014, firstly empirically after the mandatory cash dividend distribution policywas promulgated, whether the will and degree of cash dividends distribution and the change of cash dividend distribution surplus signals of Earnings Persistence,in test for the overall sample it is really so.Therefore, this article drawn the following conclusions: under the half mandatory cash dividends distribution policy, the distribution of dividends can convey the information about the future earnings in Chinese A stock market. the policy of cash dividend rate is pegged to the qualification of refinancing in2008 is reasonable. This paper puts forward the following three suggestions: first, strengthening Cash Bonuses Guidelines, normalize the cash dividend policy of listed companies.Regulators need to strengthen the constraint ability of Cash Bonuses Guidelines, intensify information disclosure of listed companies, and constraint for managers to make cash dividend policy; Second, improve the mandatory dividend policy, realizes the cash dividend substantive link to enterprise refinancing qualifications. in the short term regulators should implement stricter regulations, cash dividend proportion can not only be link to public rights, but also be link to share placements, and the issuance of convertible bonds issued in the stock market and other ways of direct financing;Third, Regulators can speed up the implementation of registration system, to make for the formation of long-term investment concept.The innovation of the thesis lies in the following aspects:it not only studied the effects of dividend payout on the earnings persistence of listed companies, but also considering the influence of half mandatory cash dividend distribution policy in our country.