Research On The Influence Of Investor Protection Judicial Enforcement On The Dividend Policy Of Listed Companies

Operation of securities markets, requires a series of institutional arrangements(formal and informal) to reduce transaction. From the perspective of the company, canbe divided into internal corporate governance and corporate external governance.Investor protection and dividend policy respectively belong to the internal corporategovernance mechanism and corporate external governance mechanism. Dividend policyas an important governance of listed companies, related to the distribution of interestsbetween different shareholder groups, and also related to achieve the investment incomeright of minority investors. As the internal corporate governance, dividend policysubject to the external corporate governance of minority investor protection status.Firstly, from different angles, the research literatures were combined about thedividend policy and minority investor protection. Then, the paper describes corporateexternal governance, corporate internal governance and their relationship to each other,And describes the status of the listed company’s dividend policy on China’s securitiesmarket, to ascertain the reasons from the level of minority investor protection, this paperput forward the theoretical assumptions--there is a positive correlation between investorprotection and dividend policy: a higher level of investor protection will result in ahigher level of dividend payment. Using the relevant data about our country securitiesmarket in2010-2012A-share listed companies, in order to do descriptive analysis andregression analysis which seek the influence of the actual level of investor protection inthe same legislative background and different efficiency of law enforcement for thedividend policy of listed company. The empirical results show that: the relationshipbetween investor protection and dividend policy is the outcome model. Finally, based onthe results, combined with the current reality background and put forward the relevantsuggestions, including improve laws and regulations, strengthen the efficiency of lawenforcement, optimizing the shareholding structure and establishing a multi-levelcapital market.