A Study Of The Internal Governance Mechanisms’ Impact On The Dividend Distribution Policy

Internal-corporate governance mechanism is the core of modern businessoperations. It is also a direct tool for corporate control. For different internalgovernance mechanisms, the owner given the management rights of the managers andthe manager’s monitoring capabilities are different, and will lead to the formulation ofdividend policy.This paper chose the2010Shanghai and Shenzhen A shares of the company’scross-sectional data as the study sample.using canonical correlation analysis. Tostudy its stock dividend and cash dividend from the three angles of the ownershipstructure, board characteristics, executive compensation affect the empirical resultsshow that:①Cash dividends and ownership structure was highly correlated, cashdividend and the board of directors characteristics and executive compensation do notexist obvious correlation.②Stock dividends and ownership structure was highlycorrelated; correlation between stock dividends and the board characteristics of eachvariable, in which the size of the board and stock dividend distribution was negativelyassociated, the size of the independent directors and the stock dividend was a lowpositive correlation, the supervisory committee size and stock dividends showed aweak positive correlation; between stock dividends and executive pay is positivelyrelated to managers holding a higher proportion of higher annual salary tube stockdividend.