Optimization Of Semi-mandatory Dividend Policy

In order to regulate the capital market cash bonus system, protect investors and foster the long-term investment philosophy of capital markets, the Commis-sion has carried out a series of regulations relating to cash dividends during2001to2013. We defined those provisions which relate to cash dividends of listed companies as "semi-mandatory dividend policy."In2008the Commission issued "The Decision on Amending Some Provi-sions of Cash Dividends of Listed Companies",and the official reconnection of cash dividends and the right of refinancing of listed companies immediately aroused strong controversy in both academia and practitioners. The reason why companies offer new shares to refinance originally lies in its demands of cash for self-development, but if they are required to pay before financing, the cash flow shortages of enterprises will increase.It has been5years since the "Decision" had carried out, whether the restric-tive policies of receive dividends have achieved the expectant goals and how to fix the loopholes are all discussed in the next5chapters of the essay.The first chapter is the introduction, which describes the background, the purpose, the thoughts as well as the framework of research ideas.lt also shows the research methods and emphasize the main contribution of this analysis.The second chapter is a literature review of the research, the literature of cash dividend policy and dividend policy of semi-mandatory in both China and foreign countries are summarized, which also indicates that the researches about semi-mandatory dividend policy in the past almost only focused on the ratio of re-ceive dividends.The third chapter introduces the theoretical basis of dividend policy,and also elaborate the formation, identification, purposes, conception and characteristics of dividend policy of semi-mandatory. The fourth chapter is to assess the effectiveness of the semi-mandatory divi-dend policy. Through the analysis of the complete financial records data between2472A-share market companies from2003to2012, it has been found that the ratio of the listed company which had receive dividends has greatly improved since the semi-mandatory policy has been carried out, but the dividend payout rate does not change too much.In terms of the cash dividend, policy only affects the companies which are lack of fund, except for those which should have been granted the inter-est. Dividend policy works partly on the information disclosure of listed compa-nies, but has a negative impact on the persistence and continuity of receive divi-dends. At the end of this chapter,the defects of the policy, which refers to the con-nection of refinancing and cash dividends and "one size fits all" policy, have also been put forward.Chapter V put forward optimized opinions for different types of businesses to deal with the policy on the base of chapter4. Finally, with reference to mature ex-perience from overseas capital markets, we should perfect the law systems, the tax policies and bring in the mechanism of shareholder voting, and at the same time we should cancel refinancing with cash bonuses linked to other areas to improve the semi-mandatory dividend policy. The chapter also proposes further research directions in this article.The main contribution of this paper is on the effectiveness of a more compre-hensive analysis of semi-mandatory dividends. In addition to the previous concern about receive dividends from the scholars, it also concentrates on the information disclosure of dividends policy and the relationship between dividends and refi-nancing. With reference to mature experience from overseas capital markets, the essay put forward optimized opinions to deal with the problems in semi-mandatory dividend policy. What is insufficient is that the implementation of the policy is re-garded as the main variable that affect the cash dividends of A-share listed compa-nies, which weakens the consideration of other factors.