The Research On The Relationship Between The Institutional Investors Shareholdings And Cash Dividends

Along with the rise of "shareholder activism", institutional investors have become a major force in the capital markets in developed countries such as European and American. But in China, due to the late development of institutional investors and long-term existence of the phenomenon of the split share structure, institutional investors have played a limited role in listed companies. In recent years, because regulators issued a series of policies and measures to encourage the development of institutional investors, institutional investors have been greatly improved both in the number and in size. After completion of the split share structure reform, China's stock market has entered a phase of circulation; the right of institutional investors to speak with the listed companies has been enhanced as well as a higher proportion of shares. The topic that whether a public company's dividend policy as an important financial decision will affect the investment behavior of institutional investors and institutional investors affect the role of the dividend distribution are worth exploring.This paper reviews the relevant literature on the basis of institutional investors in our country's development situation and the status quo distribution of cash dividends to 20007-2010 in Shanghai and Shenzhen listed companies as samples, applying the integrated use of independent samples t test, two Logistic logic regression analysis, multiple regression analysis and empirical test of simultaneous equations to test the relationship between institutional investors holding and cash dividends of listed companies. At last, the paper put forward three corresponding countermeasures and suggestions from the respective of the listed companies, institutional investors and regulators.This study concluded that, the institutional investors holding ratio of the group with cash dividends was significantly higher than the group with none cash dividend, the institutional ownership ratio of the group with higher cash dividends is significantly higher than the group with lower cash dividends, the cash dividend of the group of listed companies with institutional share holdings is significantly higher than the group of listed companies with no institutional ownership, the level of cash dividend of the group with higher institutional share holding were also significantly higher than the lower level of shareholding group; institutional investors share holding and the probability of whether institutional investors choose this stock have the release of a positive correlation with the level of cash dividends; paid cash dividends of listed companies and the level of payment also showed a positive correlation with institutional investors share holding. The further test of simultaneous equations showed that the institutional ownership and cash dividends is a relationship of mutual influence, cash dividends have become an important reference when institutional investors make their investment decisions, institutional investors have also been actively involved in the governance of listed companies and have impact on the cash dividend policy.