Research On Cash Dividend Policy Of Listed Companies Based On Catering Theory

The listed firms' dividends policy is the focus of our society.Why the listed companies choose dividend payment is still unknown.In order to explain this phenomenon,scholars put forward various theories,but still could not solve it.American scholars Baker and Wurgler first proposed A catering theory dividend from the perspective of behavioral finance in 2004,and verified the phenomenon that the managers cater to the dividend demands of investors in the United States of developed capital markets.Can thecatering theory explain the cash dividend policy of China's listed companies? Therefore,this thesis combines the theory of catering with the real situation of China,and studies the explaining power of catering theory on dividend issuing policies of Chinese listed companies.The overall research framework of this paper is as follows:First,several classic dividend theory are analyzed and discuss whether it applicability in our securities market.China's capital market is different from the developed capital market in western countries.China has insufficient protection for small and medium-sized investors,special ownership structure and short time of developing capital market,which lead to apply to theory of western countries that can not to explain China's capital market.Catering theory is valid under the assumption that investors are irrational,and investors in China's capital market are relatively irrational,so the theory may explain China's dividend policy.Secondly,the cash dividend payment need be explained from four perspectives:(1)From the perspective of willingness to pay dividends;(2)From the perspective of dividend payment mode;(3)From the perspective of dividend payment ration;(4)From the perspective of continuity of dividend payment.Then,based on the status quo and the research of domestic and foreign scholars,this thesis analyzes the listed companies from three different dimensions,including the whole listed companies and the state-owned and private listed companies divided by the nature of ownership,and assumes that the dividend policies formulated by managers cater to the needs of investors.This thesis takes 2000-2017 as the research interval,and the data of cash dividends paid by a-share listed companies whole a-share listed companies,state-owned listed companies and private listed companiesas the research samples,and respectively builds models for analysis from the supply side managers and demand side investors of dividends.The possibility of managers' willingness to pay dividends is analyzed with the companycharacteristic model.Judge the applicability of catering theory in cash dividend payment decision of China's listed companies.In the empirical results of the catering theory,there is no significant relationship between dividend premium and dividend intention,that is,the catering theory cannot explain the decision-making behavior of cash dividend payment of China's listed companies.Finally,on the basis of the situation and empirical analysis,this thesis summarizes:investors to invest always remains non-rational,which is harmful to the interests of investors;When making dividend policies,listed companies do not give priority to the needs of investors and do not consider the long-term development of the company,which is not conducive to the healthy development of the market.According to the summary,propose some suggestions: investors should rationally treat the dividend distribution of listed companies;When deciding to make dividend policy,managers should consider the long-term interests of the company and the rights and interests of investors comprehensively and measure the relationship between them.The management department should not only pay attention to the formulation of rules of relevant cash dividend policies,but also be clear about the strength of listed companies' implementation of cash dividend payment,and impose corresponding penalties on companies that fail to implement cash dividend policies.We should strengthen the protection of small and medium-sized investors and protect their legitimate rights and interests.We will ensure capital market developed in a healthy and ordered way.