| Dividend policy is a core content of the company’s financial management. It can beseen as the continuing activity of fundraising and investment, while has a significantimpact on the company’s financing and investment activities. Reasonable and stabledividend policy helps establish and maintain the company’s good image, motivateinvestors to invest. Dividend policy is the outcome of game of multi-stakeholders, so theresearch on dividend policy from the perspective of corporate governance helpsstakeholders acting rational.This paper first reviews the corporate governance and dividend policy theories andresearch scholars at home and abroad. Subsequently, we will apply the theory to thepharmaceutical industry in China listed companies, were discussed in detail. In theempirical research, the paper selected2007-2011pharmaceutical industry of86listedcompanies as the research object. We use panel data fixed effects model to obtain ameaningful conclusions.This study shows that the proportion of the company’s state-owned shares, largestshareholding ratio, the proportion of tradable shares of listed companies in thepharmaceutical industry has a great influence on dividend policy. Management incentives,board governance factors have little effect on the dividend policy. This shows that theshareholding structure of listed companies in the pharmaceutical industry is a decisivefactor in dividend policy.Finally, based on the governance structure of listed companies in the pharmaceuticalindustry, we give some advices about the ownership structure, stock market environmentand so on. |
