| Our country's securities market developed swiftly and rapidly in recent years, until at the end of July 2009, our country's listed companies is 1628, from 14 in 1991 year to 1628 at the end of July 2009 1628, the number of listed companies grew 115 times during 18 years. The total market value in Shanghai and Shenzhen securities market is 23.57 trillion Yuan, account for the GDP in 2008 approximately 95.4%. As Chinese securities market has improved steadily, the company's dividend policy is also increasingly being people's attention. Dividend policy as one of the listed company's financial management policies, it has been a research focus of financial management at home and abroad. Although Chinese scholars in the study of dividend policy of listed companies has achieved outstanding results, but about the conclusion of the study they didn't achieve consensus. Lv Changjiang and Wang Kemin considered that the state-owned stock and the legal person stock holding proportion is bigger, the insider controls the degree to be stronger, the dividend payment level is lower. Wang Xin also thought that because of "alone big" and the insider controls, the holding shareholder favors little draws bonus or does not draw bonus, by alone enjoys this part of residual incomes. However, another some scholars have the opposite viewpoint; Yuan Hongqi thought that because of the controlling shareholder's low holding cost and high dividend returns ratio, when the holding shareholder's ownership is high, the likelihood of transferring funds from listed companies in the form of cash dividends is greater. Lee and Xiao even more clearly proposed the majority shareholder of plunder concept about the dividend policy.Obviously, under the current system background, what role cash dividends actually played needs the support of further empirical evidence. But many scholars discovered'that the holding shareholder of Chinese listed company has strong preference for cash dividend. For this phenomenon, free cash flow hypothesis and the tunneling hypothesis have given different interpretations. Is the purpose of large shareholder to cut down principal-agent cost based on free cash flow hypothesis or to transfer interest to itself based on tunneling hypothesis? According to signaling theory, a listed company distribute cash dividends has the information content, and cash dividends'payment has transmitted the related corporation earning quality information to the outside. In this paper, we makes the further inspection to Chinese listed company's cash dividend policy on the basis of existing research, taking the earnings quality by the sustainability of the Earning as substitution variable, and then we investigate the relationship between dividend and earning quality, and find out whether the relationship is influenced by concentrated extent of corporate ownership. If the large shareholders were now transported out of self-interest motive, then the relationship between dividend and sustainability of the earning will be weakened with the increase of shareholder's ownership. If the large shareholders pay dividend in order to reduce agency costs and achieve the interests of all shareholders, then the relationship between dividend and sustainability of the earning will be enhanced with the increase of shareholder's ownership.Therefore, we select the sample data for the period from 2005 to 2007 in Shanghai and Shenzhen securities market to making empirical analysis, the study results indicate that:(1)Different changes in cash dividends convey managers'different expectations for sustainability of the earning, investors can perceived sustainability of the earning from the relationship between the dividend change and the earnings change.(2)It has a strong correlation between the dividend payment and earnings quality, the sustainability of the earning of the company paying dividends is higher.(3)The role cash dividends on the sustainability of the earning will be declined with the enhancement of company's largest shareholder's ownership, the improvement of concentrated extent of corporate ownership is not conducive to play an active role in the cash dividend. The empirical results in this paper more support "tunneling hypothesis." we can believe that the main motive that the shareholders pay dividend is to meet their own needs, rather than the interests of all shareholders.The thesis composed of five chapters and is as follows:Chapter 1 introduces the background and meaning of study, aim and method of research. There is also the explanation on correlative concept. Finally there is the description about the basic framework of this thesis and the various elements of this article.Chapter 2 is literature review. In this Chapter, we sort out and summarized the existing theory of dividends on the basis of reading a large number of literatures, and focus on signaling theory and agent-cost theory. A review of relevant literature can make us understanding the current status of the dividend payment, help us to find an opportunity of this research and laid the theoretical foundation and basis for analysis for the subsequent empirical research.Chapter 3 is research hypothesis and research design. According to review of the literature, we bring forward hypotheses on relationship between payment of cash dividend and earning quality. And the end of the chapter, we provide details on data and variables.Chapter 4 is empirical research. In this chapter, we do some empirical research, including descriptive statistics, regression analyses and finds research conclusion.Chapter 5 describes conclusion, advice, innovation and shortages of this paper.Main Innovation in this study are(1)Taking the earnings quality by the sustainability of the earning as substitution variable, and then we investigate the relationship between dividend and earning quality, and find out whether the relationship is influenced by concentrated extent of corporate ownership. This research conclusion provides new evidence to understanding Chinese listed companies'dividend payment. (2)Former researches usual study the relationship between dividend and earning quantity. In this article we study the relationship between dividend and earning quality. It is useful to the existing relevant research. (3)The research of the relationship between payment of cash dividend and earnings quality send the link between trend of dividend payment and motivation of dividend payment, and make it more convict.At the same time, because of the author's own research capacity and constraints of research time, this paper has shortcomings and be improved;(1) A measure of earnings quality can be from a variety of perspectives, This paper only from the perspective of sustainability of the earning to study correlation the relationship between payment of cash dividend and earnings quality seems not comprehensive enough. (2) Making the largest shareholder as the interests of the invasion and occupation of the main body, regardless of actual controller, it seems to be a bit lopsided, so there is scope for further research. (3) This article only chose companies just paid cash dividends as the sample, excluding other modes of distribution companies; the limitations of sample selection makes the conclusions of this article may be narrower. (4) This article of the sample is not long enough in time series, it will possibly have certain influence to this article research, and the scope of the research conclusion should be further discussing... |
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