Ownership Structure And Level Of Impact On The Dividend Payment After The Share Reform

Shareholding structure is one of the key factors of corporate governance. Thereform of non-tradable shares makes significant changes in Shareholding structure oflisted companies, which posts great influence on dividend policy in China. It is onemajor topic worthy of intensive study and, at the same time, a challenge to the study ofChinese dividend policy that how shareholding structure effects dividend payments inthe era after the reform of non-tradable shares.Basing on the review of related literature both at home and abroad, this paper,First of all, making analysis of the cause and harmfulness of non-tradable shares ofChinese stock market as the breakthrough point, analysing the necessity of reform ofnon-tradable shares and the basis, elaborating on the theory of dividend policy;Secondly, making a Comparison of characteristics of dividend distribution of listedcompanies between China and abroad; Again analysing how the reform of non-tradableshares influences on dividend policy of listed companies theoretically, and using theempirical data of manufacturing of Shanghai and shenzhen A-share in2009-2011toempirical research on how shareholding structure affects the dividend payments in theEra after reform of non-tradable shares; The research concluds that:(1) The proportionof the first largest shareholder is positively related to the dividend payments.(2) Theproportion of the board of directors shareholding is negatively related to the dividendpayments.(3) The proportion of the state-owned shares is positively related to thedividend payments.(4) The proportion of executives shareholding is negatively relatedto the dividend payments.(5) The proportion of circulation stocks is negatively relatedto the dividend payments. On the basis of theoretical analysis and empirical research,the author suggests that, to perfect the dividend policy of listed companies in China, notonly need the government departments concern to accelerate establishing and perfectingthe legal system mechanism and strict regulation, but also need listed companiesimprove internal governance by optimizing shareholding structure, standardizinginformation disclosure of listed companies, improving the sense of social responsibilityetc.，only a cooperation made between government and company can form a resultantforce to act upon perfecting dividend policy of listed companies, so as to encouragethem to distribute dividend reasonably and protect legitimate interest of all shareholdersincluding those of medium and small investors’.This paper mainly studies the impact on dividend payments imposed by shareholding structure in the era after the reform of non-tradable shares, which drawsout valuable conclusion with quantitative analysis to enrich research findings ofdividend policy in the past and to give advice on further perfecting dividend policy oflisted companies in China, making itself of theoretical and practical significance.