Since 2001, China Securities Regulatory Commission issued a series of incentive and mandatory dividends measures. After the share-reform plan, lots of listed companies made the commitments of a certain proportion of profit-sharing to the shareholders.
This paper first gives the implementation status of the cash dividend policy in Chinese listed companies and discusses its defects, and then emphatically analyzes the causes of these problems, as well put forward some reasonable suggestions. This paper will explore the above issues by historical data, using relevant charts and cases.
Dividend policy is one of the core financial management for listed companies. An appropriate dividend distribution policy can not only stimulate the continuously enthusiastic investment for the enterprise, and also lay a solid foundation for a long-term stable development. What’s more, it can help set up a good image for the company, which creates more opportunities and conditions for a sustainable development, and also prompt managers to put more effort and energy in work for the realization of company value.
Keywords: Cash dividend, the share-reform plan, big shareholders, listed companies
