Research on the company's dividend policy

Author: Yang Jiaxin
Publisher:
Publish Date: 2002-07-01
Features: Dividends are profits distributed to shareholders based on their shareholding. Dividend distribution is the activity of companies allocating dividends to shareholders in accordance with relevant provisions of the Company Law. Dividend policy, on the other hand, is the methods or measures formulated by company management to guide dividend distribution activities, with the fundamental goal of maximizing the company's market value. It includes strategic guidance on aspects such as dividend payment levels and distribution methods. As an important component of corporate financial policy, dividend policy originated during the formation of joint-stock companies and evolved from primitive profit distribution activities to a crucial means of maintaining and promoting company market value, fully coordinating shareholder interests and company development. China's capital market is still in its early stages of development, and corporate finance, both in theory and practice, remains to be improved. In this process, it is essential to conduct pragmatic research on major issues in corporate finance, grounded in China's national conditions and drawing on advanced Western theories and research methods. In light of this, this paper selects dividend policy as the research subject, exploring it from the perspectives of the capital market and legal environment. The aim is to refine theoretical research on dividend policy in China and provide some reference suggestions for its practical application.