An Empirical Study On Chinese Minority Shareholders Legal Protection To Influence The Cash Dividend Policy

Dividend policy is one of the major financial policies of the modern company, at the same time it is also important research areas of modern corporate financial theory. Since1961, Modigliani and Miller put forward the "MM theory", which comes from the article of "the cost of capital, corporation finance and the theory of investment", Academia to study it by relaxing the hypothesis of MM theory. After50years of continuous development, the theory of dividend policy from different angles is expanded. So far, agency theory is one of the main theories to explain dividend policy. With the economic development, the ownership structures of most countries including China are concentrated. The principal-agent problem of the companies lies mainly in the controlling shareholders expropriating the interests of minority shareholders, Dividends agency theory is used to solve the agency problems between controlling shareholders and minority shareholders. Western scholars believe that the high cash dividends can reduce the agency costs between controlling shareholder and minority shareholders, they support the cash dividend agency cost theory; Chinese scholars believe that the controlling shareholder with high cash dividends appropriated the interests of minority shareholders, they Support the hypothesis of the expropriation of cash dividends, Thus this reflects the "Chinese characteristics" of cash dividend agency theory. From2005, China formulated and implemented a series of legal policy to protect the interests of minority shareholders; Policy of these laws will inevitably have an impact on our cash dividend policy.From the perspective of the theoretical analysis, firstly, through the agency theory analysis of the cash dividend, we summed up that the controlling shareholder of listed companies in China to pay cash dividends in order to occupation of the minority shareholders’ interest. Secondly through the analysis of the theory of investor protection, we summed up that only through the establishment of a sound legal system to protect the interests of investors, and reflect the need for strengthening the legal protection of minority shareholders. Finally by review of the literature which is about minority shareholders’legal protection to the influence of the cash dividend. Understanding of relevant aspects of the status quo to laid the foundation for this study. From the perspective of empirical analysis, firstly, an Empirical test of Chinese minority shareholders legal protection to influence the cash dividend policy by regression analysis. Secondly, further study of the legal sub-assignment to influence the cash dividend policy, and providing some detailed policy suggestions with a view to strengthening legal protection of minority shareholders, In order to better protect the interests of minority shareholders. Finally, based on the validation results, analysis of our equity division reform success or not. Through empirical research we can obtain:(1)Minority shareholders legal protection with the cash dividend payment rate has a negative correlation between;(2)China’s split share structure reform has been successful;(3)The impact of the cash dividend payment rate from strong to weak order:Shareholding provisions, Shareholders’ rights, External systems regulations, Standard big shareholders behavior.This paper research has the innovations in the following:study of the legal sub-assignment to influence the cash dividend policy, And providing some detailed policy suggestions with a view to strengthening legal protection of minority shareholders, In order to better protect the interests of minority shareholders.