The Impact Of Dividend Distribution On The Performance Of Commercial Banks

The dividend distribution refers to the distribution of dividends to shareholders,which is part of the enterprise's profit distribution.Dividends belong to the distribution of the company's after tax profits.The dividend distribution of Listed Companies in China has a certain signal transfer function.The transfer of positive information can effectively reduce the agency cost of enterprises and promote the enterprise management efficiency.The reasonable dividend distribution can convey the information of enterprises' good development prospects in the future to investors.It will obviously boost the financing of enterprises and promote long-term development and sustainable operation of enterprises.Although the number of listed banks in China is not large,it plays an important role in the stability and development of China's stock market because of its special market position.The dividend distribution of listed commercial banks has an impact on bank investment decisions,capital structure and stock prices.The bank performance is related to these aspects.Different ways of dividend distribution have different influences on financing cost,cash flow and refinancing difficulty.And the different dividend distribution modes have different effects on performance.Therefore,the performance of the listed commercial banks is influenced by the dividend distribution to a certain extent.Based on the above background,with China's listed commercial banks as the research object,principal component analysis and cluster analysis method have been used to evaluate the listed banks' dividend situation from 2010 to 2016 year.The empirical research on the impact of dividend distribution on bank performance has practical significance.At the same time,it is proved that the stability of the dividend distribution of the listed commercial banks in China showing the feasibility of the empirical study on the effect of dividend distribution on the performance of the bank.Then,we use the three-stage DEA model to exclude the influence of external environmental factors and random errors and study the impact of bank dividend distribution on its performance.Finally,we verify that dividend distribution has an impact on the performance of China's listed commercial banks.