Ultimate Ownership And Cash Dividend Policy

In recent years, some foreign scholars found that listed companies wereultimately controlled by the family in many countries. Although state-owned listedcompanies accounts a large proportion in China, the number of family-controlledlisted companies are growing year by year and they are playing an increasinglyimportant role in the operation of market economy Dividend policy is one of thecompany’s important financial policies, also it is an important part which balanced theinterests of the ultimate controller and small shareholders. There are a lot of factorsthat affect listed company’s cash dividend policy, but recently most family-controlledlisted companies have ultimate controller, and they separated their cash flow right andcontrol right by made use of the pyramidal ownership structure, also they prefer tomake cash dividend policy on the basis of how to maximize their own interests.Therefore, the study of the impact of family-controlled listed company’s ultimatecontroller on cash dividend policy in the pyramidal ownership structure has a strongtheoretical and practical significance.On the basis of summarizing the previous research literature, this paper firstlyintroduced the theoretical knowledge about ultimate controller and dividend policy,and then describe the current situation of ultimate controller’s characteristics and cashdividend policy in family-controlled listed companies; then choose2499family-controlled listed companies as the data sample for three consecutive yearsbetween2009to2011to study this subject.Empirical part of this paper is mainly divided into two parts: the first part, usingLogistic regression and multiple linear regression to analyse the impact of ultimatecontroller’s characteristics on cash dividend distribution trends anddegree respectively The second part which contains two aspects, not only conductingrobust testing of the regression results in the first part in order to enhance thereliability of conclusions,but also taking account of the impact of the reform ofnon-tradable shares on the content.The results of this thesis are:1.A private listed company UltimateOwnership concentration has increased annually;2.private listed company todistribute cash dividends tendencies and efforts have increased every year;3. Ultimatecontrol a tendency to have the proportion of private ownership of listed companiesand the company’s cash dividend distribution and distribution efforts into a positivecorrelation;4. has a significant negative impact on the degree of separation ofownership and control of the orientation and distribution efforts of private listedcompanies cash dividend distribution.Finally, this article put forward some politicalrecommendations form optimal the structure of control right, strengtheningsupervision,improving information disclosure system of the ultimate controller andimproving the system of independent directors.