Research On Dividend Policy Of Listed Companies In China From Behavioral Finance Perspective

The dividend policy involves the issue whether listed companies use the earnings to the dividend distribution or retained earnings,it is not only related to the vital interests of shareholders,but also affects the future development of the listed companies.With the rapid development of China’s capital market,the dividend policy of listed companies attracts more and more scholars’ attention.But the dividend distribution in our country shows a lot of irrational phenomena,these obvious irrational phenomena have seriously affected the development of China’s capital market.The traditional financial theory has been unable to explain the reasons for this irrational behavior,the behavioral finance theory,which breaks the hypothesis of rational people to study the dividend distribution anomaly.It has a more profound theoretical and practical significance.The main contents of this paper include the following items:First,it summarized the main classical theory of dividend policy,domestic and foreign research on dividend policy.Second,it summarized the irregular phenomena of dividend distribution which has appeared in our stock market since its establishment.Third,this paper analyzed the factors of dividend distribution from 2006 to 2015 after the split share reform in China.Fourth,this paper analyzed the deep reasons of managers’ and investors’ limited rational behavior.At last,on the basis of the previous chapters,this paper proposed recommendations for managers,investors,government and regulatory authorities.The main conclusions are:First,there are many dividend distribution anomalies,low dividend payout ratio,lack of stability and so on.Second,overconfidence reduce the level of cash dividend;investor demand has a significant positive effect on cash dividend;the proportion of the first shareholder has a significant positive impact on the cash dividend;the proportion of tradable shares has a significant negative impact on the cash dividend.Third,overconfidence,dominance and tradable shares in short supply are the main causes of managerial bounded rationality;immature behavior characteristics,psychological and behavioral biases of deviation are the main causes of investors’ limited rationality,managers will cater to investors limited rational dividend preferences for dividend payment.