Enforcing the Cash Dividends of the Listed Companies to Recycle the Equity Culture

Compared with the mature markets, dividends of the listed company in China pay more attention on stock dividends than cash dividends, making a unique equity culture. To reshape China's equity culture, it is an important foundation to implement forcing cash dividends. The legislative measures include: determine reasonably the proportion of cash dividends; introduce the complaint to force to distribute dividends; strengthen the penalties for the violation of the cash dividends. The main measures in recycling the equity culture in China include: emphasis on performance growth and cash dividends; performance growth and cash dividends maintain a positive correlation with stock price; carry out the education on the company value and the investor's investing value.