The Impact Of Tax On Dividend Policy And Its Empirical Research

The dividend policy is an important field of a company's finance, and it is one of the three core contents of modern company's financial activities. It is not only the continuing of company's activities of raising money and investment, but the certain result of the company's financial activities. As one of the parts of a company's financial policy, it serves for the company's financing arrangement as well as the capital structure. So an apt dividend policy is very important for the realization of a company's financial object, it is also important to build up a company's favorable visualize and to ensure the investors' confidence of the company. There is no scientific dividend distribute theory can be a guidance for all the companies in our country, this causes the dividend policy of the listed companies are not so criterion. With the development of the stock market, the importance of the dividend policy gradually appears which causes the operators of the company to think about it seriously. In order to make a dividend policy for the company, we should analyze the impact factors of the company's dividend policy firstly. Though there are many factors to impact on it, different company has it's own factors. As every listed company will be influenced by tax inevitably, we hope we can analyze the impact of the tax on dividend policy. A lot of scholars have studied their relations, while they emphasize particularly on the compare of income tax for individual and capital profit tax. As the capital profit tax has not been imposed in our country, we need not choose the dividend policy by comparing the income tax for individual with capital profit tax. So we think it will be feasible to consider the impact of income tax forcompany on the dividend policy, and mainly consider the income tax for company's impact on the way that the company pay its dividend and the dividend payment rate. And then, use the method of empirical research to measure the relation of the income tax for company and the dividend payment rate to make a conclusion.