Empirical Study On Chinese Listed Companies' Dividend Policy On The Basis Of Reform Of Non-tradable Shares

Concern about the stock market is based on different subject, government hopes to optimize the allocation of economic resources through the stock market, state-owned enterprises hope to raise fund through the stock market, ordinary people hope to be rewarded through the stock market. There are so many people concerned about China's stock market, and even many foreign investors are also concerned about China's stock market, so the dividend policy of listed companies will be very important.Because of the special circumstances of our country, in order to protect state-owned shares of listed companies and state-owned legal person shares to be in dominant position, the stock is divided into tradable shares and non-tradable shares, the dominant state-owned shares and legal person shares can not be traded in the market. large number of experts, scholars and professionals in the investment attack the duality structure of stock ownership in China securities market, China started reform of non-tradable shares from April 2005, so far the implementation has been more than five years. With this background I use the method of empirical to analyze dividend policy of listed companies in China, and separate the sample into two parts based on the time of reform of non-tradable shares, analyze what impact the reform brings. First, research the probability of distribute dividends of China's listed companies, and compare the two samples before and after the reform, and then analyze the distribution of cash dividends of listed companies in dividend levels, and compare the two samples before and after the reform.By comparing the data before and after the share reform, I found that the reform of non-tradable shares brought some positive impact on the dividend policy,1.the number of companies that distributed dividends were growing; 2.the phenomena of abnormity cash dividend has significantly decreased; 3.major shareholders began to concern the stock price. Thus indirectly protected the interests of the small investors.Through empirical study with using SPSS found that 1.Both before and after the reform, the ratio of share hold of the largest shareholder are bigger, the greater the probability that the company pay dividends; 2.the stronger of profitability of the company the greater the probability distribution of dividend, the greater the level of cash dividends; 3.The higher levels of debt of the company, the lower probability of distribute cash dividends, but because implications of the policy, I also found that after the reform, the greater ratio of current liabilities, the company tended to the higher the payment of cash dividends; 4.the better grow ability the company is, the lower the probability distribution of dividend, the lower the level of cash dividends; 5. I also found that the larger scales the company is, higher probability of distribute dividends, but the level of cash dividends paid is lower, revealed the phenomenon of large companies are stinginess; 6.both before and after the reform, the biggest two factors that influence the dividend policy are earnings per share and scale of the company. But after the reform, the third biggest factor is sales revenue growth; 7.the greater the ratio of the biggest shareholder to the second biggest shareholder is, the greater the probability that the company paid dividends. But after the reform, it goes different.Finally, the paper also provided suggestions on policy. For example, the state-owned listed companies should select professional managers with fiduciary responsibility. Make new rules on listed companies'dividend distribution, strengthen the supervision of insider trading, and ensure the profitability of listed companies, publicize the benefits of long-term hold stocks and so on.