Analysis On The Relationship Of Corporate Governance And Dividend Policy Of Listed Companies In China

Corporate dividend policy is one of the three core contents of modern corporate finance management , while corporate governance is also a most important constituent of the modern enterprise theory, this paper integrates the two a common system, researches the relationship between them in-depth.Using factor analysis and multivariate regression analysis methods, and using the date from 2004 to 2006 of our listed company, this paper empirically analyzes the relationship between dividend payout ratio and corporate governance bases on their characteristic of our country. Finally, the paper gives several suggestions for our country's stock market.After studies I discover that the corporate governance plays an important role in the dividend payout. Firstly, there is a significantly positive relationship between ownership concentration degree and dividend payout ratio, which indicates that the major stockholder prefer cash dividend .Secondly, there is a significantly positive relationship between state-owned shares and dividend payout ratio , while there is a significantly negative relationship between liquid share and dividend payout ratio, which indicate that the major stockholder shift cash by tunneling behavior, and the liquid stockholder can protect their benefit by voting. Thirdly, there is a significantly positive relationship between the minority major stockholder alliance and dividend payout ratio, which Indicates that the minority major stockholder has the motive and ability protects own benefit. Fourthly, the relationship between manager ownership ratio and dividend payout ratio don't agree with the hypothesis, which indicates that manager ownership ratio is not an effective corporate governance mechanism. Fifthly, there is a significantly positive relationship between the size of the board of directors and dividend payout ratio while a significantly negative relationship between the proportion of independent directors, which indicates that the board of directors is an effective corporate governance mechanism. But the corporate can't enhance the corporate governance level by increase the activity of the board of directors.