The Impact Factor Of The Cash Dividend Policy Of Listed Companies In China

Background:MM theory has been challenged ceaselessly since their theory that dividend policy has nothing to do with the enterprise value was brought out. Although the dividend policy theory has developed in different aspects in the past 40 years, this theory is still not perfect. It is not able to help us to understand the property of dividend and the dividend policy clearly. A lot of scholars are studying the dividend policy in China, but the papers about the factors affecting dividend policy are still very scarce, which is the reason why I choose this topic.The main content:There are 3 chapters in my thesis. The 1st chapter introduces the concept of dividend policy and factors affecting it. The meaning of dividend and dividend policy were introduced in the 1st part. And the second part introduces three kinds of traditional dividend theories : bird in the-hand theory, MM theory, and Tax differentials-theory. The Bird-in-the-hand theory recommends high dividend, MM theory believes that it doesn't matter whether the dividend is paid or not, and Tax differentials-theory recommends low dividend. And the modern theories include clientele effect-theory, signaling hypothesis, and agency cost hypothesis. Clientele effect-theory believes that corporation should adjust dividend according to the shareholders'preference. Signaling hypothesis believes that dividend policy can affect stock's price. Agency cost hypothesis believes that the payout of dividend will decrease the agency cost. In the 3rd part I introduced the papers about the factors affecting dividend policy. Lintner said that most corporations tend to give firm dividend and the change of dividend is determined by the dividend of last year and the cooperation's profits of this year. There are different...