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Dividend policy has been an issue of interest in financial literature. Western corporate代写留学生论文finance researchers study dividend policy dates from 1950s, and their research is tending toward considerable perfection and mature now. Unlike western countries, in China there is an emerging stock market in his teens, which leads to the same research issues are quite different from those of the developed countries. As a matter of fact it surely lack applicable dividend theory suit for the China’s realities. In order to resolve above research gap, according to the research plan, this study will summarize the motivation of dividend policy in China stock market.

Following Miller and Modigliani's (1961) pioneering dividend irrelevance theory, many studies seek to explain corporate dividend policy. Counter to Miller and Modigliani's conclusion, researchers argue that a firm's dividend policy may have real economic consequences due to several elements Lintner (1962) and Gordon (1963) argue that the investors do not want to take risks. Therefore valuing a payment of expected dividends more highly than a payment of expected capital gains because the dividend component. A tax-adjusted model had been developed by Farrar and https://www.51lunwen.org/liuxuelunwendx/Selwyn (1967). They assume that investors will normally maximize after tax income. And this model contends that no dividend should be paid and the share repurchase should be used to distribute corporate earning. Litzenberger (1979) and other scholars contend that the dividend policy should be adopted as a signaling mechanism; the firm value is changed by through the dividend policy affect the income tax. On the other hand, if the margin tax rate of investor is higher than the long-term capital gains tax rate, the investor is willing to reinvest instead of gaining cash dividend. Another dividend policy hypothesis suggests that dividend policy is affected by other market imperfections such as information asymmetries and agency costs, Jensen (1986). Lazo (1999) finds that companies (90%) use dividends as a signal of their future earnings. They are very reluctant to cut dividends, regardless of the purpose for such a cut. Even when the companies initiate stock buyback program, they do not reduce the dividends to support the repurchase. 75% of the firms have actually increased their dividend payments. Koch and Shenoy (1999) study finds that both dividend and capital structure policies of the firm interact to provide significant predictive information about future free cash flows of the firm. Thus, strong information effect has been observed for both over and under investing firms than for value maximizing firms.

Introduction
1.1 Background
Dividend policy is the most important component of a listed firm’s overall financial policy. It is comprised of a series of decisions regarding how the firms distribute profits to their shareholders and it mostly includes basic contents about the selection of dividend policy. To make corporation's value maximize is an important problem needing solving in company's finance and management. The dividend policy of a company is determined together by all kinds of factors, such as legal limitation, contractual limitation, industry factor, inner management, shareholders' inclination and tax law etc. T本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。