An Empirical Research On The Influence On Cash Dividend Of Ownership Structure Of Listed Companies In China

Dividend policy, as one of the three major financial policies, has always been a hot topic of theoretical and practical study. The appropriate cash dividend can set up creditable reputation of a listed company and inspire investors' passion. Ownership structure is the base of corporate governance. Different ownership structure reflects different interest relationship, which have an influence on cash dividend. In the reform of share rights splitting in China, a significant change in ownership structure will bring a significant change in cash dividend.In this paper, we have a brief review of the Western dividend theory and a literature review of China scholars'research in the field of cash dividend. Then we analyze the characteristics of China's ownership structure and cash dividend combined with the special circumstances in China's capital markets. On this basis, we divide the ownership structure into four areas: the structure of equity liquidity, the structure of shareholders'identity, the degree of ownership concentration and constraint, and the structure of equity market segmentation. Taking the data of Chinese A-listed companies in the 2004-2007 as a sample, this paper makes an empirical study on the influence on cash dividend of ownership structure by constructing a factor model of cash dividend. The result shows that the higher the equity liquidity, the less cash dividend; the higher the proportion of state-owned shares, the lower the proportion of corporate shares, the greater cash dividend; the higher concentration and lower constraint, the greater cash dividend; the companies which issue H shares distribute less cash dividend.In order to analyze the hot issues of China's security market, we select the four sub-samples for further empirical study, results are as follows: as the reform of share rights splitting optimizes the ownership structure, companies tend to a rational policy of cash dividend; Companies with abnormal high cash dividend got more serious occupation problems; Companies in small and medium-sized panel have got more public attention and higher cash dividend; cash dividend policy in different year have a different character. Finally, based on the theoretical and empirical research, we make recommendations to perfect China's ownership structure and cash dividend policy.