Research On The Dividend Policy And Its Influencing Factors Of Listed Company On SME Board

As one of the financial management activities in modern enterprise,dividend policy has always been the research focus of scholars.The choice of dividend policy has an important influence on the development of the enterprise itself and the interest of external investors. At the same time it can also affect the healthy development of capital market.The listed company should formulate reasonable dividend policy,not only should they consider the interests of major shareholders, but also its own actual situation,the stage of development and the interests of all parties before they make a decision whether to pay dividends, when,the amount and the way of the distribution.The SME board was established in shenzhen stock exchange on May17,2005, since the first nine listed on SME board then,nine years has passed. The establishment of SME board not only improved the level and structure of the capital market in our country,but also expand the breadth and depth of our capital market, SME board provide a more broad financing channels for large numbers of private enterprises, small and medium-sized enterprises. China’s capital market development is not mature enough, small and medium-sized enterprises are at the exploration stage, the relevant laws and regulations system are also not standard enough. From the succession in SME board listed company’s dividend policy, most companies’ dividend policy are lack of continuity, dividend distribution behavior is not standard.In this background, this paper based on the particularity of SME board market, make research on the current situation of their listed companies’ dividend policy and its influence factors.And then puts forward suggestions to standardize the dividend policy of listed companies according to the case analysis of company J.This paper includes five parts:The first part is the introduction.It mainly describes the background and significance,domestic and foreign study on the dividend policy.Then it intronces the paper’s ideas,basic framework and methods.At last it points out the possible existence of innovation and shortcomings in this paper.The second part is the basic theory of dividend policy.This part mainly introduces some definitions and theory of dividend policy.The definitions include dividend,dividend policy and the type of dividend policy.The theory includes the main theory of dividend policy,such as MM dividend irrelevance theory,"A bird in the hand" theory, the tax differential theory, the customer effect theory, information diliver theory and agency theory.The third part is the current situation about dividend policy of listed company on SME board.In this part,I summarize the charater of current dividend policy of listed company on SME board by data,then analyse the dividend policy’s influencing factors of listed company on SME board from the internal and external environment.The fourth part is case analysis.This part takes company J which the author had personally internship as a case.Company J is one of listed company on SME board,it represents the current status of listed company on SME board to some extent.After understanding company J’current dividend policy,I analyse company J’ external circumstances and its own situation to find the influencing factors of company J’ dividend policy.The fifth part is conclusion and suggestion. This part based on the combination of the theoretical research and case analysis, make conclusions for the actual situation on dividend policy of listed company on SME board, then propose policy recommendations to standard listed company on SME board.I hope this paper can enrich our dividend policy contents of listed company on SME board, help company make decision on the company’s dividend policy in the future, helps investors accurately to assess the growth of the companies, and help to protect the shareholders, investors, creditors and the company’s own interests.