An Empirical Research On The Dividend Policies And Corporate Governance

Corporate dividend is an important way to reward shareholders. So, it have been the major concern of investors.Company governance stipulates the responsibilities and rights of the various participants, such as the board of directors, managers, shareholders and other stakeholders. Thus, there is an inevitable link between the listed company's dividend policy and corporate governance. Compared with the western capital markets, our dividends are always on low level and lack of continuity. Investors can't get an reasonable returns. by cash dividend. This paper is to study the dividend from the perspective of our corporate governance to explore this abnormal phenomenon. I wish my paper is helpful to improve he corporate governance structure and raise the level of dividend.Starting with the basic characteristics of dividends, then make an description of dividend level of 2008,1 have an overall grasp of dividend level in our country. In the third part, I establish a model to research the link between the dividend policy and corporate governance, focusing on the relationship between controlling shareholder with cash bonus. The results indicate that the proportions of state ownership, of controlling shareholder and the size of the board positively correlate with corporate dividend, while independent directors and the proportion of current share negatively correlate with corporate dividend. Moreover, this paper concerns the above quto dividend on the capital market, and make an empirical research between it and corporate governance structure. The results indicate that the proportions of controlling shareholder positively correlate with above quto dividends. This shows there exists controlling shareholder seizing profits through dividend.Based on the empirical research, I think to solve the problem that dividend is low and unstable, controlling shareholder seize profits through dividend, Strengthening supervision is not enough, we should improve ownership structure, board structure, and strengthen the information disclosure to perfect the corporate governance structure, raise the dividend level and safeguard the interests of minority shareholders.This paper verify the empirical relationships between various factors of corporate governance and dividends, the results enrich the previous studies. Lastly,Ⅰprovide some practical advice on improving corporate governance and dividend level.