Institutional Investors, As The Backbone Of National Development Of Securities Markets

Institutional investors,as the backbone of national development of securities markets,are also an important driving force of corporate governance. Institutional investors,with the size of abundant funds,whose investment strategies and investment behavior have an important impact on the entire stock market. A late start in China's securities market is still underdeveloped,and the capacity of the market is smaller. However,in the strong support of national policy,institutional investors in recent years have made leaps and occupied almost 50% of the market value. The market-lead force is growing.This paper explores the cases of institutional investors to participate in governance of listed companies from the perspective of cash dividend policy. First introduce and define the dividend policy and institutional investors,followed by the introduction of the traditional theory of dividend policy. And second based on the modern theory (agency theory of dividends,dividend signaling theory),analyze the relationship between institutional investors and cash dividend policy that may exist in; Third review previous domestic and foreign research literature on institutional investors and the company's dividend policy ;At the same time,introduce the status quo and features of the development process of China's institutional investors and cash dividend distribution ; and finally do the empirical test between institutional investors and the listed company's cash dividend policy from 2003—2008 data.Empirical results show that:(1) the former stake proportion of institutional investors with whether the company have the current distribution of cash dividends and cash dividends paid was significantly positively correlated,indicating that institutional investors can participate in governance among listed companies in some extent,and be able to impact the company's cash dividend policy.(2)From the view of the cash dividend payment,both before and after the share reform period , the company's cash dividend payment level and pre-institutional shareholding were significantly correlated in the 1% level,but the B-share after reform is less than before the share reform ,that is,before the share reform,cash dividend payment of listed companies is more relevant with previous ratio of institutional investors holding; From the probability of paying cash,the relationship between the probability of paying cash in listed companies after share reform and pre-existing institutional shareholding is much stronger than before the share reform.(3) the stake proportion of social security insurance institutional investors with the probability distribution of cash dividends of listed companies and cash dividends paid was no significant correlation,mainly due to: short time of National social security and insurance institutional investors into the stock market,and limited scale; In addition,there are strict restrictions in the investment ratio of domestic social security,insurance institutional investors .