Institutional Investors Holding Interaction With Listed Companies Cash Dividend Policy Research

Foreign study about the mutual relationships between institutional investors and the listed company’s cash dividend policy is very rich, in China such kind of study is less and mainly focused on the relationships between overall institutional investors and the listed company’s cash dividend policy, but the relationships between them may very different because of different kinds and different investment style, for the time being the study of relationships between different kinds of institutional investors and the listed company’s cash dividend policy is scarce.According to the appetite for cash dividend, In the study of whether the listed company’s cash dividend policy can influence institutional holdings, the paper classify the institutional investors into2kinds, they are cash dividend appetite kind and non cash dividend appetite kind, in the same time, when researching whether institutional investors can work upon the listed company’s cash dividend policy, according to their enthusiasm of participation in company management, I classify the institutional investors into positive type、negative and uncertain type. The paper chooses data of the A-shares in the stock market between years of2008-2010as research samples, make a detailed Classification research. In the paper I mainly used the multiple linear regression analysis method and Comparative analysis method.The empirical results reveal:(1) the cash dividend policy has an impact on the institutional holdings, they are positive correlated, which reveals that the institutional investors take the cash dividend policy as an important investing criterion.(2) The listed company’s cash dividend policy have different impact on different kind of institutional investors,the cash dividend policy has an positive effect on the Securities investment fund、Insurance company、Social security fund and Qualified foreign institutional investors, but it doesn’t has an stable relationship with the Brokerage and it’s collection management、 Enterprise annuity、Trust and Finance company.(3)The institutional investors also have an positive effect on the listed company’s cash dividend policy, which means that they participate in corporate governance in some degree.(3)Only the Securities investment fund can influence the cash dividend policy, other institutional investors don’t have such function.