The Impact Of Ownership Structure On Cash Dividend

Dividend policy and corporate governance research is always connected. From the foreign research of Dividends policy, it is not reach conclusions although there are much more theoretical research and empirical analysis. As the different background of economic system in particular, classic western perspective on the dividend can not be used in China. Contrast with the traditional Western theory of dividend policy notably, the cash dividend payment can be an important way that the major shareholder occupied the interests of small shareholders in China's special ownership structure. This dissertation would research the relationship between the cash dividend and ownership structure from the perspective of interests occupation in the background of ownership structure.Firstly this dissertation analysis the impact of the ownership concentration and balances on cash dividends in the background of the Split Share Structure. Then we make a empirical analysis to prove the relationship between the cash dividend and the shareholding structure through chose the variables of ownership concentration and balances. And we find that the cash dividends would be a way that the major shareholder occupied the interests of small shareholders. Finally, we also analysis the impact that property of previous major shareholder and major shareholder changing nature on the cash dividend policy.The result show: the greater power of the largest shareholder, the more cash dividends; the more relative power of other major shareholders to the first major shareholder, the less cash dividends; whether the relationship of "checks and balances" or a " collusion " existing among the large shareholders is determined by the property of the first few major shareholders, homogenous property of ownership is easy to conspire to pay more cash dividend, whereas different property of ownership are incline to pay less cash dividend; and the change of the first shareholder also manifest a different dividend policy.