Study On The Large Shareholders' Embezzlement And Cash Dividend Policy Of List Companies

Whether or not the large shareholders of listed companies embezzle the funds directly or use an indirectly way by using the cash dividend policy is a problem, which puzzled the academia a long time. At the beginning of the Chinese stock market coming into existence, it was designed to serve those state enterprises. To maintain the main body of the public ownership, all the state enterprises listed in the market are still controlled by the State. This paper is based on the special background.Firstly, the paper presents the main content. Then it backdates the classic dividend theory, and sum up the research result which relate with the ownership structure, embezzlement and the dividend policy. And it analyzes the current status of ownership structure of listed companies, the cash dividend distribution and embezzlement in China. Based on the special background in our country, the paper expands the equity pricing model of the large shareholder. Combining the previous research and the current status of our country, the paper put forward five hypotheses. Finally, the paper verifies the hypotheses by using the descriptive statistics, the single factor analysis and the structure equation model, and gets the results.The results shows that the equity rate of the large shareholder have an important impact on the embezzlement and the cash dividend policy. The equity rate of the large shareholder has positive impact on the cash dividend, and it has a reversed"U"relationship whit the embezzlement, witch first rising and then declining. State owned shareholders have a strong preference for cash dividend, and it has low degree of embezzlements than non-state-owned shareholders. Both the embezzlement and the cash dividend are the ways to maximize the value of shares by the biggest shareholders. Both of them are replaceable (negative correlation).