The Empirical Research On Cash Dividend And Corporate Governance

The study of dividend policy lasts for years, but neither the relevance ofdividend policy nor the irrelevance of dividend policy, neither the agencytheory nor the signaling theory can explain the dividend policy perfectly. Thecorporate governance issue being one of the most important characters ofincorporated companies has a significant effect on the dividend policy. Thestock market of China has a short history and the dividend policies of listedcompanies are not consistent. However, the investors could be protected bysuitable dividend policies. This article will explain the dividend policy withcorporate governance issue, and try to find a way to improve thedividend-sending system of publicly traded companies and to protectcommon investors.This article sets cash dividend per share and the payout ratio asdependent variables, and chooses independent variables from the ownershipstructure of corporate governance. As a result, I find the relationship betweenthe ownership concentrations, ownership ratio of the second largeststockholder, institutional ownership ratio, outstanding stock ratio and thedividend policy. I also use fixed-effect model and random-effect model todemonstrate the result.