Cash Dividend Policy, Related Transactions And Controllings Shareholders’ Interests

Dividend policy is one of the company’s three main decision-making, with the continuous development of China’s securities market, dividend distribution also have a significant change. The investors become more and more concern about dividend distribution.The cash dividend is not only the basic channel for the return of the outside investors,and as the reflection of the controlling shareholders’ interest,but also is the recovery of the controlling shareholders’ funds. When the ownership proportion of company is high,cash dividends can be an instrument for controlling shareholders to expropriation.But related transactions is also an instrument of expropriation.This paper investigates the cash dividend policy from the perspective of controlling shareholders and tunneling, analyzes whether three of them have relations.Based on the tunneling theory,combined with the agency theory,signaling theory,the paper analyzes the cash dividend policies of some companies,analyzes the relationship of the cash dividend policy,related transactions and controlling shareholders.To help the investors to have a better understanding the motivation of the controlling shareholders and help the medium and small shareholders to protect their own interests.Study shows that:cash dividend policy and related transactions stands for the requirement of contronlling shareholders,both of them are relpaceable.They are the ways to maximize the interests of the contronlling shareholders.The expected contribution of this paper is to analyzes the cash dividend from related transacions and controlling shareholders,which are helpful in undersanding the essential reasons of the controlling shareholders choose different policies.The inadequacy is case studies lack of empirical data,and also lack of rigorous theoretical anlysis.