The Dividend Distribution Research Of Gem Listed Company In Our Country

As the core of financial management, dividend policy plays a crucial role in corporate operation and management. For listed companies, dividend distribution has always been one of the three financial activities and its rationality is vital to listed companies and investors alike. How to distribute dividend and maximize shareholders’ equity is closely related to the development of listed companies. While that more and more scholars begin to focus and research on dividend distribution seems to be a theme that has been talked a lot, thanks to the development of China’s market-based economy, the ChiNext Board breaths new life to the area. Currently, researches of dividend distribution policy by China’s scholars are mainly based on researches of the Main Board and there are relatively fewer researches of companies listed on the ChiNext Board. Compared with the Main Board market, the ChiNext Board has its own features in terms of scale and equity structure, resulting in the different characteristics in corporate dividend distribution. Thus, its is essential to conduct specific researches on such market and provide investors with some ideas of judging companies listed on the SMEs Board.In China’s multi-layer market system, the ChiNext Board is accepted by more and more people. In 2009, in order to encourage independent innovation, the Shenzhen Stock Exchange provided small and medium enterprises and start-ups that were unable to go public temporarily with a securities trading market that could offer financing channels and growing room. Listed companies on the ChiNext Board are characterized by high technology, rapidly growing revenue and strong equity flow, giving the board a vital role in capital market. The establishment of the ChiNext Board not only supplies more financing channels for small and medium companies, but also expands China’s capital market. Dividend distribution is highly valued since the establishment of the ChiNext Board, which has seen great development, thanks to the support of all walks of life, as well as numerous problems. Some ChiNext Board-listed companies rarely distribute dividend while some have implemented high dividend policy for consecutive years. In addition, China’s capital market is not well-established and relevant laws and supervision system are not sophisticated. As a result, the ChiNext Board, which is too young and, compared with sophisticated western capital market, still has room for reforms.All walks of life pay much attention to the ChiNext Board since its establishment. As one of the three financial activities, dividend distribution not only affects the financials of listed companies, but also is related to the interests of shareholders. Therefore, researches of dividend distribution policy of companies listed on the Chinext Board are significant to improving China;s capital market, standardizing the behavior and activities of ChiNext Board-listed companies and protecting the interests of investors. This paper is mainly based on the researches of foreign and domestic dividend distribution policy and historical data of companies listed on the ChiNext Board. It conducts an empirical analysis of dividend distribution policy of SMEs Board-listed companies from the perspectives of cash bonus payment, share bonus payment and dividend payment of companies listed on the SMEs Board.