An Empirical Study Of The Share Reform Of Lisetd Companies Under The Cash Dividend Distribution

In the period of the birth of the stock market, the planned economic system plays animportant role in the economic operation, planned economy thinking deeply rooted inpeople’s hearts. Our principles and policies based on public ownership, the coexistence ofdiverse forms of ownership. In order to defend the dominance of the state, the publicshares are not tradable. Thus bred with Chinese characteristics inherent-"tradable." Thissituation resulted in tradable largest shareholder misappropriation of funds, cash dividendssuper powers, lack of motivation to improve the performance of managers, speculation isrampant, and thus the capital market can not act as an economic "barometer." Tradableshares has become a bottleneck of China’s capital market development, the share reform isimperative.April29,2005, the share reform had begun. So far, the Shanghai and Shenzhen tocomplete share reform program of listed companies accounted for about90%of thecompany. As a major institutional change on China’s capital market is bound to have animpact on the financial behavior of listed companies after the share reform is completed.The cash dividend policy as one of the company’s core financial issues listed, directservices to the company’s ultimate financial goals.Although2006began research on the emergence of a group of scholars share reform,but a short time due to the reform and the impact of the global financial crisis in the secondhalf of2008, most of the scholars are not expected to prove the hypothesis, differentopinions, different conclusions. After a lapse of several years, the authors of the study toagain share reform in the exclusion of many factors limiting conditions. Empirical studiesshow that: first, the share reform has a significant impact on the governance structure oflisted companies in China. After the share reform, a sudden rise in the proportion oftradable shares, the proportion of state-owned shares and legal person shares gradualdecline in the proportion of ownership concentration decreased significantly, makingChina’s capital market " dominance" of the situation has improved, cash dividenddistribution policy toward healthier direction. Secondly, the willingness to pay cashdividends after the share reform is stronger than before the share reform. Again, after theshare reform, the governance structure of listed companies ’ willingness to pay cash dividends undergone significant changes Which proved that the proportion of state-ownershares, the proportion of tradable shares, the shareholding ratio of the sum of squares ofthe top five shareholders, Z12, Z51, and there is a correlation between the S value andwillingness to pay cash dividends, and the associated correlation between the share reformafter the share reform than before relationship is weak. Proved under tradable state, cashdividends tend to become another interest conveyor tunnel, there is a strong non-tradablecontrolling shareholder dividends will; significant decline such a strong willingness bonusafter equity division reform, thus confirming the split share structure reform help to curbtransfer of benefits in cash dividends to protect the interests of minority shareholders.Finally, the empirical study of selected indicators and the level of cash dividends paid bythe discovery of factors have a significant impact on the level of cash dividends paid by theproportion of tradable shares have the ratio of the largest shareholder, the proportion ofshareholders and the top five, five bit stake squares and major shareholder, Z12and Z51.Proving once again that the share reform is completed, motivation largest shareholder cashdividend policy interests of the use of transport weakened.In summary, after the share reform, optimize the equity structure due to the size of theinterests of shareholders based on a unified, efficient capital markets play a sound, and thevarious functions of the corporate governance structure, the use of large shareholders cashdividends policy transfer of benefits act effectively suppressed. Facts have proved that theshare reform was a successful reform is another big step forward in China’s economicdevelopment. Premier Li Keqiang said:"The Third Plenary Session of the Party’s eighthproposed to comprehensively deepen reforms, reform is put through to all areas ofeconomic and social development of all aspects of the reform is to promote basicorientation to the market force, and activate the community. creativity, the government’sresponsibility to exercise due diligence, so that people benefit."while the share reform issuch reforms.