Empirical Research On The Relationship Of Equity Incentive And Cash Dividend Distribution In China’s Listed Corporations

Cash Dividend payment of listed companies is not only related to the distribution of net profit after tax and the required funding of future business development, but’also has relevance with the whole development of stock market and investors’ returns. In addition to the directly cash dividend policy related to the companies issued by SFC, we have found that equity incentive also has impact on cash dividend. Therefore, under our special equity incentive system background (protection type of equity incentive), combined with agency theory and dividend signaling theory, this thesis analyzes how the implementation of equity incentive impact on the cash dividend to provide positive reference for the Commission to strengthen supervision and promotion of listed companies payment of cash dividends.This thesis generates empirical research on how equity incentive impact cash dividends. This thesis is divided into six parts:The first part is the introduction. This section introduces the background and significance of this thesis. And then propose what to research. At last, introduce innovative point of this thesis.The second part is the literature review. Domestic and international research literatures were introduced in terms of cash dividends, as well as research equity incentive impact on the cash dividend, and the literature reviewedThe third part is the related concepts and theoretical basis. This section clarify the related concepts, such as cash dividends, equity incentive, then explain the theoretical basis of the thesis.The fourth part is the study design. This section describes how the empirical study designed, data took from year2006to2013. two assumptions are about the impaction of equity incentive on the cash dividend issued by listed companies. The willing of listed companies cash dividend and cash dividend per share are set as the dependent variable, equity incentives is set as independent variables.The fifth part is the empirical results and analysis. This section brings data into the model to get the regression results. The thesis use descriptive statistic, correlation analysis, logistic regression analysis and multiple linear regression analysis methods of empirical test to obtain equity incentive cash dividend relationship empirical results. The results show that there is a significant positive correlation between equity incentive of listed companies and willingness to pay cash dividends and the level of dividends.The sixth part is conclusions and recommendations. From the results of how equity incentive influence cash dividend of listed companies, the implementation of equity incentive can indeed improve cash dividend of listed companies, and enable the minority shareholders returns. However, from the process of cash dividends promote equity incentive, we cannot distinguish the motivation why executives enhance cash dividends. In summary, the equity incentive could have played a important role in promoting cash dividend and protecting the interests of minority shareholders, but there are still some problems. Finally, the article concludes with four proposal on improve cash dividends and equity incentive.