| With the process of Split Share Structure Reform in 2005 and the quick development of the institutional investors in China, the institutional investors have becoming the most important participant and are making greater and greater contribution to the healthy development of our security market. Scholars both home and aboard have conducted a lot of research programs on the activity and the influence of the institutional investors. Based the research by the former scholars andthe "prudent-man" rule, this paper went on a further discussion on this topic. Fistly,the influence of the propotion of the institutional holdings on the dividend policy was discussed. And on the other hand, we discussed whether institutional holdings will influence the amount and the stability of the payout policy.This paper selected the data of all the A-share listed companies from 2006 to 2008 to avoid the impact of the Split Share Structure Reform. Logistic Multiple Regression and Multiple Linear Regression Model were used for data analysis. Also the Stable Dividend Model was introduced for further discussion. Finally the conclusion was draw according to the results.The results showed that the institutional investors in China had more preference for the companies that could pay dividend or pay more cash dividend. Although the Social Security Funds were considered to be more prudent as their more Strict fiduciary responsibility, the Social Security Funds did not show more preference for the companies that paid more dividend. Also the U-shape relation was tested for the influence the institutional holdings for the stability of the payout policy. More institutional holdings will result the stability coming down first and climbing up at last.This paper supported the relative findings by foreign scholars in most aspects. But there exists some difference in the influence of level cash dividends had on the preference of institutional investors. The main reason may lie in the impact of stock repurchases. |
PDF Full Text Request