Research On The Relationship Between Dividend Policy And Operating Performance Of Listed Companies In China

Dividend policy has always been a heated topic in academic literature,and it is also a matter of concern to investors.Signaling theory is a relatively mature theory.It argues that it is relatively costly for small and medium-sized shareholders to participate in the corporate events due to objective reasons.Therefore,it often costs too much for minor shareholders to search for information that is related to companies.Listed companies will send information to investors by means of dividend policy.At the same time,investors will make investment decisions according to dividend policy of the company.Although China's securities market has a short history of development,and the dividend behavior of listed companies has been equipped with normalization under the relevant laws and regulations promulgated by the CSRC,there are still unreasonable phenomena.In a mature capital market,the dividend policy contains a huge amount of information and is always true.Therefore,investors can vote with their feet.On the one hand,this promotes listed companies to improve business efficiency.On the other hand,this can also reduce the cost of information searching for small investors,protecting the interests of investors.This research selected the listed companies in retailing industry as the research object to explore the relationship between dividend policy and operating performance.What is more,this research verified the performance information containing in the dividend policy.This research first reviewed on classical dividend policy at home and abroad and made a brief evaluation,which laid the theoretical foundation for the study of the relationship between dividend policy and business performance.Then,on the basis of determining the measurement of operating performance of listed companies,this research selected the dividend payment and financial data from 2010 to 2015 of listed companies in retailing industry.This research analyzed the current situation of dividend distribution of listed companies in retailing industry from willingness to pay for dividend payment,payment level of dividend,and payment stability of dividend.Then,this research focused on the empirical analysis of dividend policy and operating performance.This research put forward the following hypotheses,which are cash dividend is positively related to cash flows,profitability,solvency,operating capacity and profit quality,respectively.This research also explained reasons for selected indicators.After this,this research conducted a Pearson correlation test and then regressed on panel data to test the proposed hypotheses.Lastly,this research summarized main conclusions and pointed out limitations.This research also put forward some reasonable suggestions for listed companies and investors.