Research On Protecting Small And Medium-sized Shareholders In Listed Companies Under The Semi-mandatory Dividend Policy

It is an important prerequisite for the standardized operation of listedcompanies, elevation of its value, healthy development of capital market andgrowth of economic to protect the interests of small and medium-sizedshareholders. The main ways for small and medium-sized shareholders to earnprofits is earning the trading post and obtaining the investment dividend. Fromthe practice of development at home and abroad, the long-term stable dividendincome is the healthy way for small and medium-sized shareholders to earnprofits. However, this is a very common phenomenon that large shareholders useno dividend policy or very large dividend policy to damage the interest of smalland medium-sized shareholders, so the protection of the interests of small andmedium shareholders has attracted widespread attention. In order to protect theinterests of small and medium-sized shareholders better, the SecuritiesRegulatory Commission had issued series of semi-mandatory dividend policysince2001to regulate and restrict the dividend behavior of listed companies.Under the influence of semi-mandatory dividend policy, there have been a seriesof changes, which includes the dividend behavior of listed companies, corporategovernance and the transparency of information disclosure etc. This articleresearches whether the dividends situation of listed companies and the protectionof mall and medium-sized shareholders’ interests have been improved under thesemi-mandatory dividend policy, then it gives some suggestions on the problemsof semi-mandatory dividend policy during the process of its implementation.Under the basis of reference for the study of a large number of literatures athome and abroad, this article combines the normative research and empiricalanalysis method. Firstly, it defines the relevant concepts and describes therelevant theoretical basis. Then it analyzes the infringement and protection ofsmall and medium-sized shareholders and finds the main reason and way that thelarge shareholders hurt small and medium-sized shareholders; meanwhile itanalyzes the importance and difficulties of the protection of small and medium-sized shareholders’ interests, discusses the impact of protection of smalland medium-sized shareholders to listed companies. Lastly, it analyzes theevolution and development of semi-mandatory dividend policy in our country.This paper analyzes the implementation background of the semi-mandatorydividend policy in our country from four aspects. They are the early developmentsituation of our country’s securities market, the information disclosure conditionof the listed company, the market speculative atmosphere and the internationalpolicy trend of dividends. It analyzes the purpose of the implementation ofsemi-mandatory dividend policy and divides the implementation process ofsemi-mandatory dividend policy into three stages: initial stage, propulsion stageand mature stage. This article analyzes the problems in the implementationprocess of semi-mandatory dividend policy in China. After that, this paper makesempirical analysis. This article has screened the listed company from2008to2012, put forward some assumptions and give research design on the basis of theabove, then use SPSS and Excel to give descriptive analysis, correlation analysisand regression analysis, after that obtain the results. The empirical results are:1)During the publication of semi-mandatory dividend policy, the cash dividendpayment rate of listed companies and their number are on the rise as a whole,that is to say, the semi-mandatory dividend policy has improved the listedcompanies to give cash dividend.2) The listed companies which give cashdividend have good protection of mall and medium-sized shareholders than thatnot.3) The payment rate of cash dividend had inverted u-shaped relationshipwith the protection of minority shareholders interests. That is to say, giving littlecash dividend or give too many cash dividend is not good for the protection ofsmall and medium-sized shareholders’ interests, only moderate cash dividend canhelp the protection of small and medium-sized shareholders’ interests. Thenaccording to the theoretical and empirical analysis results, this article givesadvice from three aspects, those are the improvement of the semi-mandatorydividend policy, the improvement of small and medium-sized shareholders’ ownprotection consciousness, strengthening the protection of small andmedium-sized shareholders’ interests from institutional investors.The main innovation of this article is that it gives a new vision on theprotection of small and medium-sized shareholders. The new vision is semi-mandatory dividend policy. And under this, it carried on the theoretical andempirical analysis. It gives a definition of the semi-mandatory dividend policyand analyzes its background, then find that semi-mandatory dividend policy is aninternational trend. After that, this article divides the stages of semi-mandatorydividend policy and summarizes its characteristics of each stage.