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An Empirical Study of Guangxi Listed Companies structure and dividend policy

Author: SongHuiRe From: www.yourpaper.net Posted: 2009-12-12 10:56:49 Read:
[Abstract] dividend policy research from the perspective of equity structure is a hot issue in recent years, scholars from various countries research. 2004 Guangxi listed companies for the study sample, to analyze the characteristics of Guangxi, dividend policy, in order to reflect the ethnic minority areas listed company status. And the relationship between ownership structure and dividend policy, empirical analysis, the final analysis of the empirical results and put forward some suggestions.
[Keywords] Guangxi Corporate Equity Structure Dividend Policy

Dividend is the return on shareholder investment, but also the company's cash expenditures. The dividend distribution is not only related to the economic interests of the shareholders, but also related to the company's future development. Appropriate dividend policy, you can establish a good corporate image, the company continued to inspire the majority of investors additional investment, enabling the company to obtain a stable and long-term development conditions and opportunities. For a long time, the dividend policy has been a great concern of Western countries financial theory and practical circles. In recent years, the dividend distribution of listed companies in China has also become one of the hot issues of the capital market. The dividend policy is one of the three core activities of modern corporate finance, also is the contemporary chrematistics on a mystery. The factors that affect dividend policy there are many, such as the country's macro-economic situation, the company's continued profitability, asset liquidity, financing ability and so on. The split share issues in the equity structure of listed companies in China, is very conspicuous, about 2/3 of the shares not yet in circulation, only 1/3 of the shares in circulation. Relative to the shareholding structure of the southeast coastal areas of Guangxi listed companies more single, centralized and strong liquidity. The special ownership structure is largely responsible for the distribution of listed companies, the diversification, the variability distribution policy and coherence.
In this paper, the method of empirical analysis, mainly from the perspective of equity structure comparison analysis of of Guangxi different shareholding structure of the company's dividend policy, some of the measures proposed specifications of Guangxi listed company dividend distribution behavior by studying the relationship of the equity structure of listed companies in Guangxi and dividend policy.

Sample selection and selection model

Sample selection
To December 31, 2004 in Shanghai, Guangxi listed company listed on the Shenzhen stock as the research object, adopted December 31, 2004, cross-sectional data analysis experience. This paper selected sample number 22, including 10 of the Shanghai stock market, and 12 in Shenzhen. And other related research, this article only select listed companies in the Guangxi region, because the purpose of this paper is to analyze the conditions and characteristics of the Guangxi listed company dividend distribution policy. The data comes mainly from the 2004 annual report of listed companies (obtained from the financial sector the website and cninfo website), statistical analysis using statistical analysis software Eviews3.1 completed.
Model design
This paper studies involving dividend distribution indicators, indicators of equity structure, operating performance indicators, indicators of firm size, capital structure indicators, cash flow indicators. Dividend allocation indicators have: per share cash dividend (DPS), the dividend payment rate (PAYOUT); equity structure indicators have: national shares in proportion (SP), within the legal person shares proportion (LP), the state-owned legal person shares in proportion (SLP) and the circulation of shares in the proportion of ( FP); operating performance indicators are: return on equity (ROE); firm size indicators: the total assets of the natural logarithm of the number of (LNA); indicators of capital structure: the cash flow of the asset-liability ratio (DR); indicators: per share operating cash flows (CPS).
Dividend payment rate (PAYOUT) is explained variable, national shares in proportion (SP), the state-owned legal person shares in proportion (SLP), the domestic legal person shares proportion (LP) and the circulation of shares in proportion (FP) for the explanatory variables, ROE (ROE), the total assets of the natural logarithm of the number of (LNA), balance rate (DR), the amount of operating cash flow per share (CPS) for the control variables to construct the model as follows:
ŠĆ is the residual term. Construction of the model is based on the following Reflection. China's listed companies tradable shares and non-tradable shares of the other options, including state-owned shares, the state-owned legal person shares and domestic legal person shares of non-tradable shares. The role of representing the different nature of equity shareholders in dividend policy making process, while their dividends tend to have different interests and motivations and policy preferences, and thus various equity ratio will directly affect the company's dividend payout ratio. In addition, the Company's operating results, scale, capital structure, cash flow will also have an impact on the dividend payout ratio. The corporate dividend from earnings of production and operation, the stronger the profitability of the company is more likely to pay dividends, the dividend payout ratio will be higher. Large-scale enterprises to avoid the risk is relatively strong, and they are easier to raise funds from outside and therefore more likely to be a larger proportion of earnings distributed to shareholders. Asset-liability ratio is a sign of the degree of financial risk, the higher the balance, the greater the financial risk, the enterprise is likely to be cash survive, leading to lower dividend payout ratios. The immediate source of cash flow to pay dividends, the higher the amount of operating cash flow per share, the dividend payout ratio will be higher.

2004 Guangxi listed company dividend distribution characteristics

Dividends of listed companies in China mainly in the form of cash dividends (cash dividends), stock dividend (bonus shares), capital reserve to share capital (r
Increase) three. Guangxi listed company dividend status as shown in Table 1. The sample descriptive statistical analysis showed that, 2004
Year Guangxi listed companies dividend has the following features:
1. Do not assign phenomenon is still prevalent. Table 1 shows that the company has not allocated or not allocated to cash dividends 9, accounting for 40.9% of the total number of sample companies; companies do not distribute cash dividends more than the number of company earnings per share is less than or equal to zero. Visible, profitable company does not distribute cash dividends is widespread.
2. Cash dividends become the main form of dividend distribution. Seen from Table 1, 22 of the dividend distribution company allocation of secondary school places now 8, accounting for 36.36%. Most of the bonus shares or to increase the company to send the current is associated with.

3. Cash dividends per share special phenomenon worthy of attention. Table 2 shows the average of all the sample companies cash dividends per share for 0.101364 after nine zero sample excluding cash dividends, cash dividends of 13 per share cash dividend of 0.171538. Table 3 for different interval distribution of cash dividend per share, in a number of between 0.2-0.4 company the highest proportion, 22.76% of the total sample, accounting for 38.46% of the Cash Dividends company number.
4. The dividend payout ratio is lower and the difference is obvious. The largest number of companies to see its distribution (Table 4), the dividend payout ratio in the 0.2-0.5 range, accounting for 31.8% of the total number of sample companies accounted for 53.85% of the of Cash Dividends company number. Overall, the lower dividend payout ratios of listed companies in China.

5. The dividend payout ratio different proportion of the largest shareholder, there are significant differences. Table 5 is based on the results of the regression analysis of the proportion of the largest shareholder dividend policy of single factor. Table 5 shows the F value of the per share cash dividend is greater than 1, but the P value not significant test, that the identity of the largest shareholder does not lead to significant differences between the samples per share cash dividends. The dividend payout ratio of single-factor analysis of variance F value is greater than 1, and the P value by a significant test of the identity of the largest shareholder in the confidence level of 99%, a significant impact on the dividend payout ratio. Third, the regression results of the relationship of the shareholding structure and dividend payout ratio analysis

According to the data collected on the site, and the use of software Eviews3.1 related variable regression results are shown in Table 6:

The regression results show, Guangxi proportion of state-owned shares of listed companies, the proportion of state-owned legal person shares, the proportion of domestic legal person shares, the proportion of tradable shares a negative correlation with the dividend payout ratio. Firm size (the natural logarithm of assets), the amount of operating cash flow per share positive relationship with the dividend payout ratio, ROE, asset-liability ratio and the dividend payout ratio is negatively correlated. Seen by the t-test results, Guangxi listed company equity structure variable and the dividend payout ratio is not significant and may be subject to more than its allocation characteristics influence. The relationship between ROE and dividend payout ratio and the general experience does not match that special ownership structure of Guangxi listed company of its dividend policy. And the less the total number of samples (22), a one of the data results, such as the 600,252 shares (dividend payout ratio highest and lowest ROE) removed, ROE show a positive correlation with the dividend payout ratio.
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