A Study On Dividend Policy Of Listed Companies In Pharmaceutical Industry

Dividend policy is one of the three major contents of modern financial decision-making.Reasonable dividend policy can convey the signal of good business performance to the market,and benefit the long-term development of enterprises.For investors,dividend payment is the obligatory responsibility of listed companies and the return of listed companies to investors.With the development of Chinese capital market,the status of dividend distribution of listed companies in China has been greatly improved.More and more listed companies are involved in cash dividends.But compared with the mature capital market,there are still phenomena such as low dividend payment level and iron rooster in China.Therefore,it is still of certain significance to discuss the formulation of a reasonable dividend policy.With the implementation of the "healthy China" strategy,the pharmaceutical industry is playing an increasingly important role in driving China's national economic growth.Yunnanbaiyao belongs to the traditional Chinese medicine bio-pharmaceutical industry.As an state-owned enterprise with 27 years of development,its operating profit is far ahead in the industry and its development prospects are good.However,its dividend distribution status is not satisfactory.Although it has been paying cash dividends since its listing,it has the following problems: low dividend payment level,low dividend yield,unstable dividend policy and neglect of the rights and interests of small and medium investors.Therefore,based on the research results of dividend distribution policy at home and abroad,this paper first sort out the dividend distribution status of yunnanbaiyao.Then,the dividend distribution of other 60 listed companies in the same industry is analyzed and compared with the dividend distribution of yunnanbaiyao.I find that factors mainly include the financial factors and non-financial factors.Financial factors mainly include profitability,solvency,and the growth ability.Higher profitability has provided the safeguard for the sustainability of dividend policy.Debt paying ability is not stable.Strong growth ability and high debt ratio led to the lower dividend pay level.Non-financial factors include ownership concentration,enterprise management mechanism,life cycle and regulatory policy factors.They are embodied in the following aspects: Ownership concentration is high;Yunnanbaiyao has kinds of investment opportunity;The company is in the growth stage;the management mechanism is redundant,the supervision strength is small.Among the various factors influencing dividend policy,the author established a multiple linear regression model by taking the dividend per share over the years as the dependent variable and the indicators of financial factors and non-financial factors as the independent variables.I analyzed the correlation and influence degree between different factors and dividend.Therefore,in view of the problems existing in Yunnanbaiyao's dividend distribution policy,the following Suggestions are put forward for the company :(1)prevent and avoid sudden reduction of cash dividends and optimize the financial structure;(2)Reduce the ownership concentration of Yunnanbaiyao and improve the corporate governance structure;(3)Broaden the financing channels of Yunnanbaiyao and improve the dividend payment level;(4)Yunnanbaiyao may carry out interim dividends and strengthen information disclosure;(5)Appropriately reduce the expansion speed of the compny's scale.