| Dividend policy is one of the important financial decisions of a listed company, with regard to the distribution of earnings of listed companies to shareholders or retained in the hands of the balance within the company. Usually, the West of listed companies in cash dividends and dividend distribution Stock dividend based, but the cash dividend is relatively more general way, and to send a higher proportion. As known as the cash dividend is payable in cash a company in the form of dividends, it will directly affect the current income. Shareholders must therefore attached great importance to the existence of the cash dividend. But from the company perspective, whether to send that cash dividends, distribution of the number of cash dividend, with the company's size, ownership structure, capacity and other factors related to cash-rich, this will be a corresponding impact on the assets of the company's liquidity and profitability and future development conditions. So whether to issue a cash dividend, distribution of the number of cash dividends of listed companies need to balance many issues. Because of this, cash dividends for listed companies and investors are of great significance.Compared with Western countries, China's securities market has a relatively short history, there are institutional deficiencies and regulatory system is imperfect and so on. Listed Companies in China exist less the cash dividend distribution, no distribution of the phenomenon,which is totally inconsistent with listed company in Western. For this difference, domestic scholars were examined from different perspectives, analyze its causes, and theories related to dividend policy efforts on the Chinese stock market's interpretation of an empirical study. However, due to the particularity of China's securities market, such as the stock market short history, ownership concentration is high, the presence of non-tradable shareholders and the state-owned shares "dominance" and other features, led to the theory of some of the cash dividend policy are not well explained status of China's securities market. Such as Chen Xiao(1998), Joe and Cheng Ying (2001), He Tao (2002) and Chen Xin-yuan,(2003) are respectively, through empirical research that cash dividends of listed companies in China are not with a signal effect. Signaling theory can not explain cash dividend policy of listed companies in China.Based on the dividend policy review and analysis, Agency cost theory and Expropriation Hypothesis can well explain the hypothesis of listed status of the Company's cash dividend policy. In addition, most of the previous literature from the ownership structure, company size, growth and other point of view, consider the listed company's cash dividend policy. Starting from the controlling shareholder of the characteristics of its cash dividend policy implications are few. In fact, any financial policies are determined by the specific subject, in the current controlling shareholders of listed companies prevailing circumstances, the controlling shareholder is a financial decision-making body. Moreover, in many cases, investors can cross-shareholdings, multiple ownership, etc., that controlling shareholders have separation of ownership and control. At this point, the actual leader in financial decision-making is controlling shareholders or actual controllers of generalized, not the direct control of the people, which is the largest shareholder. Therefore, the actual situation in our country, In this paper, the economic nature and degree of separation of ownership on behalf of the controlling shareholder (actual controller) features. Analysis of characteristics of the controlling shareholder of the cash dividend policy, mining affect our cash dividend policy of listed companies in deep-seated reasons.In this context, the main purposes of this study include the following. First,review and analysis relevant theories of dividend policy. Which theory can reveal the listed companies in China to better explain the status of the cash dividend policy. Second, observe characteristics of the controlling shareholder and the status of the cash dividend policy, and discuss its differences with the West of listed companies. Finally, empirical research on the characteristics of the controlling shareholder of the cash dividend policy, mining affect our cash dividend policy of listed companies in deep-seated reasons.To achieve the purpose of this study, this study mainly divided into the following two aspects.On the one hand,to regulate this study. In the review of the basic theory of dividend policy, based on the combination of the special nature of China's securities market, such as market short history, ownership concentration is high, the presence of non-tradable shareholders and the state-owned shares "dominance" and other features,found the agency cost theory and Tunneling Hypothesis can well explain the status of the cash dividend policy of listed companies in China.Most listed companies in China are state-controlled; therefore, this article will be divided into the economic nature of the controlling shareholder and non-state-controlled state-owned holding two. Agency cost theory thinks that, relation of agency costs of listed companies and cash dividends is negative correlation. In China, the state-owned company controlling shareholders can not personally involved in the supervision, but by a certain department or designated representatives holding company supervision. Therefore, the agency costs between state-owned nature of the controlling shareholder and management are higher. Considering the case of self-interest, management would tend not to send cash dividends. The difference is that, in order to strengthen the supervision of listed companies, non-state-owned holding company would send his trusted family member or trusted to manage the company. At this time,agency costs between controlling shareholders and management is lower, the company tends to send that cash dividends. Expropriation Hypothesis theory suggests that, in order to quickly recover their investment and transfer funds of listed companies, controlling shareholders prefer cash dividends, occupation of the interests of minority shareholders.China's state-controlled listed companies is on a relatively sound legal and regulatory system. So, state-owned controlling shareholders do not have the motivation of occupation of of the interests of minority shareholders. Correspondingly, the China's current non-state controlled listed companies on the legal regulation is not perfect, therefore, non-state holding companies tend to send cash dividends found. In addition, the person in charge of the central enterprises in order to meet the national performance assessment of the requirements, tend not to send that cash dividends. But, non-state-controlled listed companies do not have the requirements on the performance appraisal. Therefore, this article think that the economic nature of controlling shareholders significantly affect cash dividend policy. Also, state controlled listed companies tend to have lower intensity of cash dividends than non-state controlled listed companies. In order to occupy the interest of minority shareholders, controlling shareholders often use pyramid ownership structure, resulting in the separation of ownership and control. This paper use separation of two rights (ownership/ control) to measure the separation of ownership and control level. When the separation of two rights (ownership/control) is small, the controlling shareholders tend to get their exclusive private through related party transactions. Conversely, when the bigger the separation of ownership, that ownership and control of the difference between the smaller, controlling shareholders tend to get their revenue sharing through cash dividends. Therefore, this paper argues that separation of ownership and controlling shareholders of the smaller, cash dividend distribution of listed companies tend to lower the intensity and distribution.On the other hand, this article establishes two models. One is Logistic regression model,which study the impact of characteristics of the controlling shareholder on tendency of the cash dividend distribution. Second is multiple linear regression model, which study the impact of characteristics of the controlling on the intensity distribution of cash dividends.Two models are designed to firm size, profitability, debt levels, cash sufficient capacity, growth of five control variables. A Logistic regression model used to select the Shanghai and Shenzhen Stock Exchange in 2009 A-share listed companies as samples. Found in a listed company to send cash dividends as the dependent variable, controlling shareholders of the separation of ownership and economic nature and degree of explanatory variables, analysis of controlling shareholders tend to feature on the impact of cash dividend. The results show that controlling shareholders of listed companies can significantly affect the economic nature of the company the possibility to send that cash dividends, and, state-controlled listed companies tend to lower non-cash dividend distribution of state holding listed companies; controlling shareholders the right to separation of the two was also significantly affect the Company's cash dividends, dividends of the possibility of separation of ownership and the greater the degree of control that the controlling shareholders of the separation of two rights (ownership/control) the smaller the distribution of cash dividends of listed companies tend to have lower. Second model uses a multiple linear regression to cash dividends, dividends of listed companies in the intensity of the cash dividend payment rate was the dependent variable, controlling shareholders of the separation of ownership and economic nature and degree of explanatory variables, analysis of characteristics of the controlling shareholder of the cash dividend intensity of distribution. The empirical results show that controlling shareholders of the economic nature can significantly affect the company sent that cash dividends in the efforts, and state-owned holding listed company's cash dividend distribution of intensity lower than the non-state controlled listed companies; controlling shareholders of the separation of ownership and the degree was also significantly affected the intensity distribution of cash dividends the company, separation of two rights (ownership/control) is, namely, the separation of ownership and control the greater the degree distribution of cash dividends of listed companies, the lower the intensity.In summary, empirical research verifies the assumptions made in normative research, demonstrates the controlling shareholders of listed companies feature on the cash dividend policy significantly. Contribution of this article contains the following aspects. On the one hand, this self-selected characteristic of the controlling shareholder on behalf of the variables to study its distribution of cash dividends of listed companies tend to influence the intensity and distribution, for the theory and reality have very important significance. On the other hand, we consider the external regulatory policies on the cash dividend policy. Because the variable is difficult to quantify in the empirical, external regulatory policies in order to avoid the impact on cash dividends, empirical research on the effect to ensure the authenticity and validity of the empirical part of this article, select the Shanghai and Shenzhen Stock Exchange in 2009 to study the A-share listed company's samples.This is the year we only select the data as samples, one of the reasons rather than panel data. Finally, a Logistic regression model and multiple linear regression model, controlling shareholders of listed companies feature on the impact of the cash dividend policy, empirical research, for further analysis of the controlling shareholder of the cash dividend policy for the control of reason to help, to make relevant policy recommendations. |
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