Study On How Split-Share Structure And Equity Concentration Affect Cash Dividend Policy

Dividend policy is one of the core financial questions in listed companies. Stable and sustained dividend policy can not only benefit to building up good image of company and exciting investors'enthusiasm of investment, but also benefit to providing conditions for company to develop stably. For a long time, dividend policy of listed company is lack of continuity and stability in our country, which has produced seriously negative function. Split-share structure and high equity concentration ratio are one of the most important factors for leading to these results.Firstly, this paper backdates historical origins of split-share structure and analyzes the approaches for acquiring benefit of shareholders with listed shares and unlisted ones. Afterwards, this paper tests our expectation empirically from two different aspects of equity structure. Empirical results show that equity circulation and equity concentration ratio have highly significant effects on cash dividend policy. The bigger the ratio of listed shares is, the smaller the feasibility of cash dividend distribution is and the lower the lever of cash dividend distribution is; the higher the equity concentration ratio is, the larger the feasibility of cash dividend distribution is and the higher the lever of cash dividend distribution is.Then, this paper divides the samples into groups according to holdings of the largest owner and holdings of shareholders with listed shares and goes on comparative analysis by descriptive statistic and comparative analysis. Empirical results further improve that in our country large shareholders with unlisted shares have preference for cash dividend but small investors with listed shares have not.On the base of empirical analysis, this paper analyzes causes of the present condition of listed companies' cash dividend distribution in our country and puts forward that split-share structure reform is great and important. Split-share structure reform makes the whole shareholders have the same benefit background. Further, the author predicts the general tendency of listed companies'dividend policy in our country after split-share structure reform and some suggestions are put forward.