Study of the Dividend Distribution Policies of Listed Companies in China

Abstract

Abstract. As one of the three major "puzzles" in finance, dividend distribution policies are financing decisions on profit retaining which have far-reaching influence on both the development strategy and image of a listed company. In the paper, analysis was carried out on the theories related to the dividend distribution policies for listed companies in China and some changes in the policies in recent two decades. It can be observed that national macro economy policies, securities market maturity, and equity structure and profitability of listed company are important factors influencing the dividend distribution policies for listed companies in China. Listed companies should gradually standardize and rationalize dividend distribution by following more strengthened law systems and regulations, optimizing equity structure, improving information disclosure quality, and enhancing profitability, thereby promoting long-term stable development.