Basing On The Catering Theory To Study The Gem Listed Companies’ Dividend Distribution

Dividend policy not only affect the investors rewarded also affect the company’s future investment and financing decisions. It is one of the key areas of corporate finance research problems. Now, domestic scholars who study the GEM listed companies’ dividend distribution are less. This paper aims to use Bake and Wurgler proposed the theory of catering to research the gem listed company’s dividend distribution policy, that is, from the perspective of investor behavior to study the influence of their preferences for the listed companies’ dividend policy. From the previous catering theory of dividends’ studies there are two views, the one is positive, the other one is negative.The paper selects 2010 to 2013 the gem listed companies as data samples. And subdividing the dividend policy of low cash dividend (cash allocation proportion is less than 30% of the distributable profits), high cash dividend (cash allocation proportion is more than 30% of the net profit), low stock dividend (sum of the send convertible ratio is less than 0.5), high stock dividend (sum of the send convertible ratio is more than 0.5)four groups of subsample. On the basis of the of logistic regression model, the research on behalf of investors preference index dividend premium and cater to the relation between the dividend payment willingness, respectively discuss catering to the effect of each group, in order to avoid the interference of other factors, the cash dividend and the stock dividend of the mixed dividend are distinguished from which allot cash dividend and stock dividend only,and to study alone.The study found that the characteristics of the listed companies’ dividend distribution shows diversity and concentration etc. And they are mainly composed of cash dividend, and at the same time the high send transfer is also popular. Only on behalf of the investors of high cash dividend preference dividend premium and gem listed company’s dividend payment will is to cater to each other, that is enterprise’s high cash dividend policy to a certain extent to meet the demand of investors. While other dividend policies have not shown to meet the demand of investors.Therefore, the catering theory of dividends for the gem listed companies cash dividend has certain explanatory power, and weak for the explanatory power of stock dividend. For high turn send, listed companies more to expand capital stock, diluted shares and increase company scale as the main purpose, and is not to cater to investors as the main goal.