The Research On The Problem Of The Cash Dividend Distribution In China's Listed Companies

Dividend distribution is one of core contents of financial management in modern companies. Dividend distribution policy is the basic policy and tactics of allocation profit surplus, with aiming at maximizing shareholder's interests. The policy and tactics are based on long-term development of companies and the interests of shareholders inside and outside company. Cash dividend is the major form of dividend distribution and shareholder's interests. Appropriate cash dividend distribution policy can not only set up good company reputation, but also arouse enthusiasm of many investors thus making companies acquire long and stable development opportunities and conditions. But in our country, the listed companies seek their self-interest and ignore the return to numerous investors in the meantime they finance from the securities market. The inappropriate cash dividend distribution has caused strong feelings among the floating stock shareholders, and our government has a high regard to the problem. How to normalize such cash dividend distribution has been a pressing need for us. Due to these reasons, the thesis research on the irregular cash dividend distribution practice and the affecting factors of the listed companies from the investors' point, analyze the reasons and make suggestions and advices on how to normalize the cash dividend distribution of the listed companies. The ultimate purpose is to make the investors get what are coming to them and build up their confidence.The thesis firstly gives a review and comment on relevant literature on dividend policy theory, shows the purpose and the affecting factors of the cash dividend distribution by theoretical study, thus to provide theoretical background for the further research on this topic. After that, the thesis analyzes the present situation of the cash dividend distribution of China's listed companies and proposes the problems. On the basis of the research above, incorporating the view of cash flow, the paper deeply analyze the actual ability and the affecting factors of the cash dividend distribution of China's listed companies by empirical study. Then the thesis draws a conclusion that the listed companies' cash flow is not enough for cash dividend distribution, and cash dividend will be influenced by the listed company's earningsper share, last year's cash dividend, capital and liabilities ratio and stock size. At last, the paper discusses the reasons of the irregular cash dividend distribution in detail and gives some suggestion for normalizing the dividend policy of listed company in China.