Institutional Investors And The Relationship Between Cash Dividend Policy Research

At present,the reform of non-tradable shares of China has been almost completed,and the target of all shares can be tradable are achieved,but listed companies are still exist outstanding problems of corporate governance.By introducing institutional investors into the corporate governance,and actively participate in the corporate governance by playing its own "shareholder activism",it also provides a feasible solution for those problems of the corporate governance which exists in the transition period of China, such as the internal control, the controlling shareholders against the interests of the minority shareholders,and so on.On the one hand,this article discuss whether institutional investors will participate in the corporate governance and thus affect the cash dividend policy of the listed companies.On the other hand,whether cash dividend policy which as a typical external appearance of the corporate governance could be send as a signal,thus affecting the holding decision of the institutional investors.This article includes seven chapters,the framework of the dissertation is as follows:Chapter 1:Introduction.This chapter mainly presents the background,the significance,the proposed research framework of the article and the possible innovation.Chapter 2: Literature Review. This chapter is organized around the main line of this study: the relationship between institutional investors and cash dividend policy,and also extension for three assessments:institutional investors participate in the corporate governance, dividend policy and corporate governance,institutional investors and cash dividend policy.Chapter 3: Theory Basis and Status Analysis. This chapter firstly put the two classic theory of dividend -dividend agency theory and dividend signal theory as the theoretical foundation,and then discuss the possible relationship which links in the theory between the institutional investors and the corporate governance by making an analysis of the both.In addition,comparing the two data of the institutional investors and the corporate governance of recent years, in order to find some correlation between the both that may exist in the actual.Chapter 4: Empirical Research Design. By summarizing the relationship between the institutional investors and the cash dividend policy of the listed companies,we propose six assumptions by discussing from a variety of different perspectives,such as whether the institutional investors holding shares,the shares proportion,the shares period,whether the listed companies distributing cash dividend,the cash dividend's level,and so on.Around the six assumptions,the author definite some relevant variables,construct the models and select the research sample.Chapter 5:Empirical Results and Analysis.Through multiple linear regression and Logistics regression methods, the relationship between the institutional investors and the cash dividend policy of the listed companies are revealed by the data.For the results after the regressions, this article take the measure that remove part of the sample or control variables for the robustness test to ensure the reliability of regression results. And also for the existence of endogenous, the author adopt the approach that lag one period and joint a simultaneous equations for the endogenous test to ensure the integrity of the study.Chapter 6:Conclusions and Policy Recommendations.The author get some relevant statistical conclusions by summarizing the results of regression analysis,and put the results to verify the six assumptions that made before. The results showed that the holding decisions of the institutional investors and the cash dividend policy of the listed companies could interact with each other, as which one is the cause and which one is the result have not been completely revealed in this article, and we need to discuss this problem furthermore.For the many problems exist with the development of Chinese institutional investors in the current stage,the author also put forward several proposed measures.Chapter 7:Limitations and Prospects.Summarizing this aritcle,we could explore many limitations which exist in our research and put forward some solutions for these defects. In addition,the author expand his research visions for digging some points that worth to study in this field in the future.