Corporate Dividend Policy Research Discussion - From The Point Of View Of Principal-agent Problem

This paper studies the main problems in the dividend policy in China's listed firms, and their harm to the efficient operation of security market. Then, it is put forward that the deep reason for the inefficient dividend policy of listed firms is the multi-tier agent problems caused by the setbacks of equity structure of listed firms. This paper analyzes the engendering mechanism of the multi-tier agent problems and the mechanism of agency problem affecting .dividend policy. Besides, it is pointed out that the weak protection for the minor investors is an important reason for the abnormality of the dividend policy of listed firms, so this paper is practically important for regulating that policy. It is concluded that, in the short run, without the fundamental change of the setbacks in equity structure and agency problem, the security regulating department should make relevant policies to regulate the dividend policy of listed firms as soon as possible. But in the long run, the fundamental solution is to perfect the equity structure and corporate governance. Furthermore, to strengthen the protection for investors is important for solving the problem of the abnormality of dividend policy.