Research On The Influential Factors Of The Dividend Policy Of The Listed Company On SEM Enterprises Board

The SME board formally established in Shenzhen Stock Exchange on May27,2004.The establishment of the SME segment represents the beginning of the constructionof multi-level capital market framework, it increases the financing channels for SMEs,which is a milestone in the development of China’s capital market. Since SME boardestablished, it has attached great importance to the return to investors, which is differentfrom the dividend policy (the perennial no dividends or pay a lower level of dividends) oflisted companies on board in China, and implement "high bonus shares and high cashdividends" dividend policy. Its high returns attract the attention of investors. As ofDecember31,2012Shenzhen SME Board has gone through eight years of ups anddowns, the number of listed companies has reached702. It has played a decisive role inChina’s stock market. The development of listed companies on SME Board in the pasteight years is very well, and overall, it has maintained a high level of dividend payout,which has brought huge return on investment for investors. How to obtain the furtherdevelopment of listed companies on the SME board in the future and how to develop areasonable dividend policy to achieve the goal of the company’s own development andgrowth and to maximize shareholder wealth will be the focus of our research.The dividend policy of listed company on the SME board is selected as the researchobject, on the one hand, which helps the majority of investors to improve risk awarenessand sense of investment, to analyze the company’s intrinsic investment value of listedcompany on the SME board through dividend distribution，and to dig out a company withpotential development, which brings a wealth of investment income for investors; on theother hand, which helps to develop scientific and rational dividend policy according totheir own development needs to ensure the long-term development of the company;finally, from a long-term perspective, is conducive to the country and the vast majority ofinvestors to predict the future of the stock market development speed, quality, and todevelop a reasonable investment strategy, optimize the allocation of market resources,and then to promote the constant improvement of the motherboard market and even theentire capital market.In this paper, research ideas is: first this paper reviews existing research results ofdomestic and foreign about dividend policy, and analyzes and summarizes the small board situation of dividend distribution of a listed company on the SME board, andcarries out a qualitative analysis of its influencing factors. Second, this paper selectsrelated indicators in2007-2011of listed companies on the SME board as a sample,propose hypothesis, and then build a multiple linear regression model.This article contains the following sections:The introduction explains the background of this paper and its practical significanceto study, collate and analyze the current situation of the domestic and foreign dividendpolicy, and then describes the research ideas, research methods, and succinctly stated theresearch content. Finally, we illustrate the innovation of this paper.Body parts: First, this paper briefly summarizes the relevant theories of dividendpolicy, including the basic content and type of dividend policy, the Western traditiondividend policy theory and the modern theory of dividend policy; Second, compared withthe distribution of dividends of a company listed on the Main Board, this paper analyzesthe status quo of the dividend policy of listed companies on Chinese SME board; Again,this paper analyzes the influencing factors of the dividend policy of listed companies onChinese SME board; Finally，I conduct empirical research on the influential factors of thedividend policy of listed companies on Chinese SME board. This paper selects financialindicators in2007-2011of listed companies on Chinese SME board as a sample, putsforward the hypothesis based on related theory, and builds a multiple linear regressionequation, and then conducts empirical analysis with SPSS18statistical software, andfinally we find the influential factors of the dividend policy of listed companies onChinese SME board. The factors are profitability, solvency, ownership concentration, thedegree of cash-rich, company size, asset liquidity (descending order according to thedegree of influence).Concluding section: Based on the previous results of empirical studies, the paperconcludes this study conclusion to make appropriate recommendations for the dividendpolicy of listed companies on Chinese SME board.