Empirical Research Based On The State-owned Shares And The Social Legal-person Shares On Stock Dividend Preference

Since the late1980s when China conducted the joint-stock reform to the part ofthe state-owned enterprises and established the capital markets,China’s securitiesmarket has developed rapidly and has made remarkable achievements.The securitiesmarket has become an important and indispensable part of the economic life andplayed a positive role in efficient allocation of resources and at the same time thelisted companies has made great contributions to the growth of the nationaleconomy.The early days of stock market,out of political considerations andmaintaining the absolute control of state-owned shares,government artificiallydesigned state-owned shares and social legal person shares traded temporarily.Thissystem design combined with imperfect laws and regulations and poor supervisionmake emerge new issues in the development of the stock market.However,the historyof the development of China’s securities market is relatively short,and it presents anumber of different characteristics with mature markets of western countries and thereare many issues to be solve.The previous literature about dividends is more on the research of cash dividendsand less on the research of stock dividends.In the only study on stock dividends,wefocused more on the market reaction on stock dividend.Since2005,China began to thereform of non-tradable shares in order to change the situation between thenon-tradable shares and tradable shares of "the same stock in different prices,withshares of different weights".In the process of non-tradable shares into tradableshares,non-tradable and tradable shares basically do not exist,but state-owned sharesand social legal person shares etc. remain.The study on the relationship between thestate-owned shares or the social legal person shares and stock dividends is not.Whatare the relationships of those?Thinking about and answering this question is theoriginal intention of writing this essay.Based on the literature review,this essay selects,after the reform of non-tradableshares in China,the listed companies of Shanghai and Shenzhen from2007to2010assamples of empirical research and examines the preferences of the state-owned sharesor the social legal person shares to the stock dividend.The research finds that theproportion of state-owned shares have a negative correlation with stock dividend pershare,the proportion of social legal person shares have a positive correlation with thestock dividend per share,and compared with the local government-ownedenterprises,in the central government-controlled enterprises the proportion ofstate-owned shares have a higher negative correlation with the stock dividend pershare.Finally,the essay based on empirical results make a number of relevant policiesand proposals in order to help the listed companies of China formulate the normdividend policy,and hope to make some my own contribution to the future research inthis regard.