Institutional Environment、investor Protection Enforcement And Cash Dividend Policy

Our market economic is in the period of rapid development, but compared with therapid development, dividend policy in China has emerged with the mismatch phenomena.It is not very good to protect the interests of investors. Meantime the legal and corporategovernance mechanisms do not play their due roles. Therefore, hope that the officialsystem and informal system can standardize the company’s dividend behavior. So thisstudy is with theoretical and practical values.This paper focuses on the trust、institutional environment and investor protectionimplementation on the influence of cash dividend policy. In the process of the research,this paper adopts the method of multiple regression analysis to carry out empiricalanalysis for2005-2010year A shares listed companies in China. This paper mainlyresearches three issues:(1)what roles institutional environment has in the relationshipbetween political connection and cash dividend;(2)what influences trust has on cashdividend policy;(3)what influences investor protection implementation has on cashdividend policy.After the investigations, the main findings of this paper are as follow:First, based on reputation effects, trust can act positive influence on the level of cashdividend payment to communicate good news about trust.Second, institutional environment can moderate the relationships of politicalconnections and cash dividend policy. Also with the market development increasing, themarketization moderates the relationship between political connections and cashdividend policy significantly.Third, more powerful investor protection implementation, the higher the level of cashdividend payment. At the same time, this paper find that a company with good investorprotection enforcement who own good opportunities pay off lower than the companywith poor opportunities.From above conclusions, we suggest that our country should accelerate the process ofmarketization to reduce political intervene, and speed up the constructions of trustinstitution and trust system, enhance the level of investor protection enforcement.