Small And Medium-sized Board Listed Company Strategic Investor Holdings And Dividend Policy Research

Since the formally establishment of Small and Medium Enterprise Board in Shenzhen Stock Exchange on May17th,2004, China’s capital market has accomplished another significant achievement on the road of building a multi-level market system. SME Board, as a distinctive and irreplaceable element, has been developing itself with the support of strategic investors in recent years. However, SME listed companies are trying to encroach the interest of strategic investors by diminishing or even cutting dividend payment.Under such circumstances, this paper selects companies with initial public offer from2004-2009of SME Board and their financial performances during2004-2010have been used to present the followed results:1) Strategic investors’ownership compared to nonstrategic investors and the probability that company decide to pay dividend are positive related, which means companies with higher share held by strategic investors compared to nonstrategic ones are more likely to pay dividend. And this relationship is the same with the case of whether strategic investors have at least one position on board. This result is generated by subjecting panel data to Logit Regression of Fama-Macbeth method.2) Strategic investors’ownership compared to nonstrategic investors and the dividend payment are positive related, which means a companies with higher share held by strategic investors compared to nonstrategic ones are more likely to pay more dividend. And this relationship is same with the case of probability whether strategic investors have at least one position on board. This result is generated by subjecting panel data to Tobit Regression.