Study On The Dividend Policy Of Listed Companies In The China's Chemical Industry

Dividend policy is one of the three core financial activities in modern company. It is the core of the distribution of profits of listed companies. Appropriate dividend policy will help the company establish a good image, and stimulate investor interest in the company's further investment, so as to promote the stable development of the company. Agency theory is one of the mainstream theories to explain the dividend policy, the theory is believed that the dividend policy can be used to reduce agency costs. There is a huge difference between American with China in the capital markets and equity structure of listed companies. Because of Ownership imperfect structure of listed companies and agency costs outstanding in China, And the relatively late start in China's securities market, our country' stock market is in one kind of weak effective power marketplace, the listed companies in our country haven't formed a sound dividend policy-making mechanism, so there are many irregularities in the distribution of dividend:This paper attempts to use the agency cost theory to research ownership structure of listed companies, agency costs and dividend policy of the real estate listed company, Analysis the problems in dividend policy, and find the right strategies to guide the market to regulate the company's dividend distribution policy in the chemical industry.This paper uses both standardized research and empirical approach. From the angle of theory, this paper has introduced the research dividend policy of the Western mainstream theory-agency cost theory. And focused on analyzing the relationship of the agency costs, ownership structure and dividend policy. In empirical research.This paper selected 2006-2010 Shanghai and Shenzhen A shares of listed companies in the chemical industry as a research object. The selection of indicators of internal governance structure and financial indicators to indirectly measure the agency costs. The agency costs variables were analyzed in the factor analysis. Then researching agency cost factors on the impact of dividend policy of listed companies in the multiple linear regression analysis. Empirical study findings:first, the empirical analysis does prove that correlation of dividend policy and agency cost factors in the listed companies in China's chemical industry's are weak. Dividend policy can not effectively reduce agency costs between shareholders and managers, Dividend policy has become a listed company's strategy of controlling shareholders occupation of the interests of the small shareholders. Second, there are two major problems in listed companies, the first problem is the agency relationship between large and small shareholders, The second problem is the agency relationship between managers and shareholders, But the first problem is particularly serious, the first problem have an important impact in the cash dividend policy of listed companies. However, the special nature of China's securities market, this effect makes the problem more complicated.