The Determinants of Dividend Payout Ratio on Real Estate Listed Companies in China: An Empirical Study on Stock Price Volatility

Abstract

The real estate industry is a capital-intensive industry and has a strong influence on the development of related industries in China. A reasonable dividend distribution policy is of great significance to its financing to meet the funding requirements for its own development. This paper will examine empirically on the determinants of dividend payout ratio of the real estate listed companies in China, and how does the dividend payout ratio impact the stock price volatility. First, relating data is retrieved from the Wind dataset. Second, I will clean the data to make it feasible for testing. Third, I will use SPSS, the statistical analyzing software, to test the data. The importance of this test can be discussed from two perspectives. This test would suggest factors could affect the dividend policy that the company has set, and how does the dividend payout ratio affect the company’s stock price.