Analysis of Determinants Affecting Cash Dividends Policy of Listed Producing Companies in China

Abstract

Distributing cash dividends is the main means of paying cash to shareholders. Correct cash dividends policy contributes to benefiting the companies in many aspects such as the increase of the firm value. Also because the institutional background of China’s corporate sector is unique, the situation of factors that affecting the cash dividends policy in China remains complicated and different from foreign countries. Therefore, we engage to seek the factors that play an important role on cash dividends paid. The analytic and empirical research result shows that the profitability is significantly related to cash dividends while size and growth have negative relationship with cash dividends paid in producing listed companies. This is helpful for listed firm regulators and management, as well as investors.