The Study Of Influence Of Dividend Policy Of Listed Companies On GEM On Value Of Companies And Interests Of Investors

As one of the core activities of the enterprise’s financial management, dividend policy decides the allocation of the company’s net profit between dividends and retained earnings. It can influence both company’s decisions of investment and company’s financing decisions. Dividend policy is the tie which connects the company’s three financial activities. According to the signaling theory, reasonable dividend policy can deliver investors the information that the company is in stable development. It can help enhance investors’confidence and create sustainable and stable space of development so as to enhance the company’s value. Listed companies on GEM (Growth Enterprise Market) maintain high cashing and high turning dividend policy. In2009-2011, the proportion of companies on GEM which have carried out dividend policy of allocating cash is more than70%. At the same time, compared with Main-Board Market, the term of establishment of GEM is short, the size and characteristic of its listed companies have great difference and researches in the dividend policy of the GEM’s listed companies are lacking. In this context, researches in influence of dividend policy of GEM’s listed companies on the value of companies and the interests of investors can provide some inspiration and reference for companies listed on GEM in process of formulating reasonable dividend policy, and it is of great significance for the future development of the GEM market in China.The dissertation explores the impact of GEM’s listed companies’dividend policy on the value of the company and the interests of investors in the researching way of the combination of normative research and research of case. In normative research, basing on the literature review and theoretical analysis, the author summarizes characteristics, deficiencies and impact on the value of the company and the interests of investors of listed companies’ dividend policy on GEM. In the research of case, dissertation chooses company of SHJH as the example which is representative in dividend distribution in the GEM listed companies. The dissertation analyzes SHJH’s dividend policy and its influence on the value of the company and the interests of investors.The dissertation consists of five parts. The first part is the introduction to the paper, including the researching background and researching purposes, the review of literature, researching methods, researching ideas and researching frameworks.The second part consists of two parts:(1) the meaning of the dividend policy and the way of dividend’s payment;(2) the theory of dividend and types of dividend policy, this section includes dividend theory and several types of dividend policy.The third part is the analysis of the optimal dividend policy of listed companies and current situation of listed companies’dividend distribution on GEM. This section consists of three parts. Firstly, the dissertation proposes the optimal dividend policy of listed companies on GEM through the combination of theories of dividend and characteristics of listed companies on GEM. Secondly, the dissertation summarizes the characteristics of its dividend distribution by statistical analysis of current situation of dividend distribution on GEM. At last, the dissertation summarizes the deficiencies of dividend distribution on GEM on the basis of its characteristics, and it analyzes its impact on the value of the company and the interests of investors.The fourth part is the analysis of the case of SHJH’s dividend policy. Firstly, the dissertation makes brief introduction of the company’s ownership structure and main business. Secondly, the dissertation analyzes the current situation and characteristics of the company’s dividend distribution. Thirdly, the dissertation studies the impact of SHJH’s dividend policy on the value of the company and the impact of the interests of investors.In the fifth part, the author put forward the point of view for dividend policy that SHJH should take. The fifth part proposes suggestions on regulating the dividend distribution of listed companies on GEM. This section put forward suggestions from three aspects which include regulatory authorities and regulations, the listed companies on GEM and investors.The main contribution of the dissertation is that it researchers the dividend policy of the companies listed on GEM from the perspective of the value of the company and the interests of investors innovatively. It also researches the characteristics, deficiencies and impact on the value of the company and the interests of investors of listed companies’ dividend policy on GEM combined theoretical analysis with a typical case. The author put forward views on optimal dividend policy of the companies listed on GEM and the company of the case. The author also proposed comments and suggestions on the dividends distribution of companies listed on GEM from three aspects. This not only enriches the point of view of researches of GEM’s dividend policy, but also provides some inspiration and reference for the formulation of reasonable dividend policy of companies listed on GEM.