An Empirical Study on Listed Real Estate Companies: The Relationship between Cash Flow and Dividend Policy

The cash flow is a comprehensive reflection of the company daily business activities, revealing a certain accounting period operating results. The cash flow and dividend policy are positively correlated with each other theoretically. However, the dividend policy of listed companies in China has strong Chinese characteristics. At the same time, the real estate industry is a capital intensive industry, and it requires higher quality of cash flow. They add the relationship between dividend policy and cash flow of real estate listed companies in China some uncertainty. To explore the relationship between cash flow and dividend policy, an empirical study was performed with the data from 2011 to 2015 of real estate listing corporations which public in Shanghai and Shenzhen stock exchange A share as the research sample. This paper puts forward reasonable proposals for real estate companies to formulate reasonable dividend policy, at the same time, for investors to provide useful information to make the right investment decisions.