An Empirical Study On Signaling Effect Of Dividend Distribution Policy Based On Equity Structure

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.Equity structure is the base of corporate governance,and one of the most important factors that influence the dividend policy. This paper tests our expectation empirically from aspects of equity structure. Empirical results show that equity concentration ratio have highly significant effects on cash dividend policy. The higher the equity concentration ratio is, the larger the feasibility of cash dividend distribution is.Modem dividend distributions theories with different opinions have come forward through loosen the hypothesis of perfect market under the MM theory. Dividend signaling theory has thought that because of the asymmetry of information between manager and exterior invest. Dividend distribution can be a market signal. Public investors estimate company's condition and prospect through the information conveyed from dividend distribution.This article reviews the development of dividend theories, analyses the fundamental and mechanism of divided signaling theory .An empirical research on the dividends signal effect of our country's public companies was done with mass historical data. Between the different equity concentration of listed companies, reseach the dividend signaling effect listed companies'in China.