A Study For The Impact Of China Listed Companies Dividend Distribution Policy On Investors' Earnings

Dividend Policy plays an important role in decision-making in the joint-stock company, therefore receiving attentions from various aspects. The China's securities market has a short history with speculation as its character. The study of the impact of dividend distribution policy on the long-term earnings, and the testing of dividend payout with long-term earnings plays an important role in the stock market, which makes help to the dividend distribution making, improve the rational investment and promote the healthy development of the securities market.First of all, this article carries out a statistical analysis of the status quo on the dividend distribution policy Chinese listed company. The results show that in Chinese stock market, cash dividends, stock dividends and transfer of capital surplus reserve to share capital are the main three among diverse modes of distribution. Comparing with foreign countries, cash dividend is too small in the distribution of domestic listed company, with a lack of mid-year and quarterly distribution. Then, on the basis of data disclosed by listed companies, sample is selected and indicator calculated. These indicators can be used to measure cash dividends, stock dividend payments as well as the level of return of investors. A regression model is set up to obtain empirical results. The empirical results show that the level of cash dividends paid and stock dividend payout, both are able to influence the annual rate of return to some extent independently, and comparing with the cash dividends, stock dividends of listed companies can give investors more benefits. Finally, some reasonable proposals are put forward respectively to regulators, listed companies and investors in order to optimize dividend distribution policy of the listed company, including improve and perfect the law and regulation systems, reduce the taxation on the dividend and use mixed dividend instead to promote the healthy development of China's securities market.The innovation possible in this article lie in the following: the time span of the study is covering the whole development of China's stock market; annual yield which is the measurement of the long-term benefits is significantly different from the indicators, therefore makes a way of studying, calculating and finding the quantity relations between cash dividends, stock dividends and long-term rate of return of the investors.