A Study Of The Impact Of Controlling Shareholder On Cash Dividends Policy Of Chinese Listed Corporate

Dividend policy is one of the most important financial decisions, also it is one of the earliest topics in financial research. In concentrated ownership structure and poor investor's protection of the environment in China, because of the agency problem between large shareholders and minority shareholders, cases of large shareholders invading minority shareholders is not uncommon. La Porta et al (1999) through researching the control chain of the controlling shareholder of listed companies found that there is ultimate controlling shareholder in the prevalence of listed companies. Thus, this paper tries to focus on ultimate controlling shareholder and the cash dividend policy. Based on the Agency Theory, this paper analyze how to use the cash dividends to obtain benefits from listed companies for the ultimate controlling shareholder and which features of the ultimate controlling shareholder impacts cash dividend policy and so on. Hoping this paper may get an explanation for dividend policy under the ultimate controlling shareholders'behavior and deepening the dividend's research in our country's special economic policy and law environment.This article is divided into 6 chapters, the specific structure is as follows:ChapterⅠIntroduction, describes the background of the ultimate controlling shareholder and cash dividend issues, theoretical and practical significance, and the overall framework of the paper.ChapterⅡLiterature Review and ChapterⅡTheoretical Basis and Hypothesis made for the theoretical analysis. This paper introduces literature of the relationship between the ultimate controlling shareholder and the cash dividend. Based on"Agency Theory", this part brings out three hypothesis.ChapterⅣStudy Design and ChapterⅤEmpirical Results are the empirical research component. This paper describes the data sources, sample selection, variable definition, empirical model and statistical estimation methods and tools. Analysis of descriptive statistics and regression estimates.Through theoretical analysis and empirical research, we came to the conclusion as follows:(1) In the study of the economic nature of the ultimate controlling shareholder and the dividend payout tendency, it was found under the influence of split share reform the ultimate controlling shareholder of the non-state controlled listed companies to distribute cash dividends tend to be more intense. That means the private ultimate controlling shareholders are more likely in the form of cash dividends to obtain benefits from listed companies.(2) In the study of the controlling right of the ultimate controlling shareholder and the cash dividend payment level, it was found that ultimate control over the proportion of listed companies has a significant negative impact on the cash dividend ratio, indicating that the more ultimate controlling shareholders control, the more income they grab from the listed company over their controlling right and thereby violated the rights of minority shareholders. Dispersed ownership structure, the relative and absolute control type of the ultimate controlling shareholders influence dividend rate with increasing holding the marginal dividend level is also increasing.(3)In the study of the ultimate controlling shareholder of separation of control and cash flow rights and the level of cash dividends paid, it was found that the ultimate controlling shareholder of the greater separation, the level of cash dividend is lower. They do not tend to share the common income, for instance, cash dividend with minority shareholders. In addition, dispersed ownership structure of the ultimate controlling shareholder, the greater separation of ownership, has lower level of cash dividends. Absolute controlling type of the ultimate controlling shareholder, separation of ownership has positive correlation with the level of cash dividend. Relative controlling type of the ultimate controlling shareholder, the relation between the separation of two rights and cash dividend is not significant.Given the analysis above, the paper concludes with the following policies and proposals.(1) Focus on strengthening supervision of dividend payments with the controlling shareholders of listed companies(2) Regulate the information disclosure system of listed companies and raise the disclosure level about the ultimate controlling shareholder.(3) Improve and implement the rights of minority shareholders and related protection laws.