Analysis Of The Impact Of Industry Factors Of China Listed Companies On Stock Dividend Distribution Policy

Dividend policy is one of the three cores of modern corporate financial activities, but also a mystery of modern chrematistics. Most researches on dividends of listed companies focus on micro and macro level. Study on micro-level focus on corporate characteristics factors and corporate governance factors. Study on macro-level mainly focus on policies enacted by CSRC and legal protections. However, on the medium level, there exists a close relationship between industry factors and dividend policy of listed companies as well. Listed companies in the same industry tend to have the same environment, and listed companies in different industries differs a lot from each other in financial characteristics, which contributes to the gap in the factors affecting dividend policy. Therefore, the discussion on industry factors affecting the dividend policy is of far-reaching significance.This paper uses panel-data econometric model and select the data about the A-share listed companies in Shanghai and Shenzhen Stock Exchange from2006to2012. This paper chooses industry dividend payment of earlier age, industry dividend demand preference, industry confidence level and industry average price-earning ratio as the explanatory variables, and selects size, growth and return on assets as control variables while cash dividend payment preference and cash dividend payment level are chosen as the explained variables to analyze the impact of industry factors on dividend policy. The results show that there is a significant positive relationship between industry dividend payment of earlier age and stock dividend policy. And the relationship between industry dividend demand preference and stock dividend policy is not significant. While industry confidence level affects stock dividend policy little, industry average price-earning ratio significantly affects stock dividend policy positively.