Empirical Analysis of Dividend Policy Based on Listed Companies of China's IT Industry

Abstract

As one of the core contents of the company's financial management, dividend policy receives universal attention in the theoretical circles. This paper selects the IT industry as research object, firstly analyzes the status quo of dividend distribution about past six years, and then selects the financial data of 2011 to build a multiple linear regression model to verify the influence factors in the cash dividend. The analysis results show that a company's cash dividend level is positively related to company's profitability, the amount of wealth, solvency, company size, but is not directly related to the relationship with the company's growth and cash flow. It can play a guiding role for the IT industry's dividend allocation through analyzing the influence factors of the cash dividend.