The Research on the Influence of Regional Cultural Differences on Cash Dividend Policy
|Keywords||Cash dividend policy culture cultural differences|
The cash dividend policy is an important financial decision-making for listedcompanies listed company decision-making corporate profits as cash dividendsdistributed to shareholders or as retained earnings to remain within the company. Thespecific content of the cash dividend policy including listed companies decidewhether the allocation of cash dividends and the amount of the distribution of cashdividends. Listed companies to develop good cash dividend policy to ease theconflicts of interest between shareholders and managers, shareholders and creditors,but also conducive to the future development of the company. Therefore, the existenceof cash dividend policy of listed companies means great significance for investors andthe creditors.Some domestic and foreign scholars study influencing factors to cashdividend theoretically and empirically from the aspects of the company’s scale, thecompany’s growth, ability of company’s profitability. Foreign scholars also takeempirical studies on the influences that cultural differences bring to the cash dividendpolicy. However, no studies have shown impact that the cultural differences betweenChina’s provinces bring to the cash dividend policy. This article will use the methodsof empirical research,Culture and cash dividend policy theory, this four hypotheses by analyzing theimpact of cultural differences on cash dividend policy; descriptive statistical analysisand then use a whole distribution of cash dividends, and the provinces of cashdividends the distribution, the provinces cash dividends distribution differences andtrends exist; followed by modeling and empirical results of testing, this article will bedefined culture as narrow cultural spiritual and cultural, spiritual and cultural the mostimportant factor is the cultural values, the paper selection culture open and Zhu, theroad book Lei cultural values as the metrics of provincial cultural differences, logisticmodel and multiple linear regression model to examine the cultural differences on thedistribution of cash dividends or not and the cash dividend payout ratio. Finally, wedraw the conclusions and prospects for the future.Through the empirical analysis, this paper draws the following three conclusions:Firstly, the statistic results of the cash dividends of China’s listed companiesfrom1991states that the overall proportion of the companies who delivered dividendshas been increasing on the initial stage (from1991to1994); while that proportion hasdeclined sharply since then for three years; but since2000, following a series of policies promulgated by China’s Securities Regulatory Commission, the proportion ofthe companies who delivered dividends has increased a lot.. the statistic results alsoillustrate the significant difference of that proportion between the companies fromdifferent provinces.Secondly, correlation between the cultural concept and the tendency of cashdividend distribution is positively, companies in the cultural concept of the higherscores and more inclined to distribute cash dividends.Thirdly, the cultural idea and the cash dividend intensity was positively,companies in the cultural ideas of higher scores and the distribution of the higherintensity.