Researches On The Motives Of Listed Companies Paying Cash Dividend In China

Dividend policy is one of the three big cores of the modern financial activities, which also is considered as a puzzle in contemporary finance. Starting from MM theory, scholars in western countries have conducted massive researches on motives of listed companies' paying cash dividend and lots of research results are produced, the most important ones in which are signal transferring theory, agent cost theory and customer effect theory. These theories are confirmed in the western countries' stock markets, but as our country's stock market is established lately and each related policy is imperfect, our country's scholars found out western theories are not well applied in our country's stock market. Under these conditions, what are the actual motives of our country's listed companies' paying cash dividend? Embarking from this question and analyzing the background and motives of our country's establishing the stock market and its development course, this paper finds out ownership concentration is an important factor that influences the motives of Chinese enterprises' paying cash dividend. Therefore, after classifying listed companies according to ownership concentration, this paper studys their motives of paying cash dividend respectively and finds out the companies which have high ownership concentration shift the cash through the cash dividend, those with median ownership concentration increase ROE to meet the standards of refinancing and those with low concentration convey future earning information and reduce the agency cost.The frame of this paper is as follows:Chapter I mainly reviews the domestic and foreign research results, proposes this article's innovation point and the research frame;Chapter II mainly reviews the background and motives of our country's establishing the stock market and its development course, describes and analyzes the characteristic of paying cash dividend. Chapter III firstlyanalyzes the serviceability of western dividend theories in our country and the motives of paying cash dividend. In chapter IV,according to the motives of paying cash dividend, the paper proposes some suppositions. Then, the paper proves the motives of paying cash dividend from three angles: firstly the paper proves the relations between ownership concentration target dividend payment level and dividend stability;secondly the paper proves the influential factors of tendency of paying cash dividend cash dividend payout ratio and payment with different ownership concentration;lastly, the paper proves the relations between the change of cash dividend and future earning. Chapter V finds out the motives of paying cash dividend with different ownership concentration: Those companies with median concentration make earning management through cash dividend, those companies with high concentration shift cash and those companies with low concentration convey future earning information .