Do Political Connections and Geographic Region Affect Cash Dividend Policy?

China does not yet have a dividend policy theory, and cash dividend policies affect the ability of companies to finance and refinance. There exists uncertainty regarding the formulation and implementation of cash dividend policy; moreover, geographical factors impact dividend policy. It is necessary, therefore, to explore the influence of politics and geographical regions on the cash dividend policy of listed companies. This study selected 11 variables for an empirical study on a selected group of listed companies, establishing the LOGIT regression model for the probability of cash dividend payments and a multiple regression model for the level of cash dividend payments. The study then considered political variables and the influence of geographical region on those variables. Results showed that both political affiliation and geographical region had a significant negative correlation to the companies' cash dividend payment probability. In response, the study recommends that the Chinese government remove regional and geographic barriers to economic development, fully leverage the positive role of market forces in the growth of listed companies, and foster a “win–win” perspective on stakeholder interests. These efforts would help promote China's economic development and support the formulation and effective implementation of sound cash dividend policies.