The Study On The Relationship Between Ownership Concentration、Check-and-Balance Ownership And Listed Companines’ Cash Dividend Policies

The check-and-balance ownership structure is the counterbalance mechanism of blockholders which refers to the addition of the majority shareholder, there are other major shareholders and multiple large shareholders can supervise and restrict each other so that alleviating the conflict between large shareholders and small shareholders. The check-and-balance ownership structure belongs to one part of the research on the equity structure of the company. At overseas researches, it is always considered to be one of the optimal ownership structure which can protect the interests of small and medium shareholders. In the time of split-share structure, corporations with single big shareholder are very commom. Other major shareholders play a very small role on corporate governance. With the completion of the split-share structure reform, ownership concentration is decreasing, the stake of the largest shareholder declines and of other major shareholders rises, which lays the foundation for corporate governance by other major shareholders. Currently, the effect of check-and-balance ownership structure is mainly focused on its relationship with company performance, internal control and enterprise value. Study on the relationship between ownership structure and cash dividend policy of the listed corporation pays more attention to the first majority shareholder and neglects the influence of other big shareholders on cash dividend. Before the split-share structure reform, the largest shareholder prefers cash dividends and other shareholders have obedience or collusion. Some scholars believe that this phenomenon does not change immediately with the completion of the split-share structure reform or the effect of non-tradable shares reform has a bit of lag which needs to further research. This paper attempts to study the cash dividends of private listed companies and clarify the impact of controlling shareholders and the power balance with shareholders on cash dividend policy of private listed companies.We examine the proportion of the first shareholder and the second to the five largest shareholders (shareholders in power balance). We take the first year of completion of the split-share structure reform as the outset. We study the cash dividend policy to find the relationship between ownership concentration, check-and-balance ownership structure with it. Our research provides new evidence for the factors of equity structure on the cash dividend policies of listed companies.These thesis chooses the largest shareholder as the representative of controlling shareholder to as the variable of ownership concentration, the ownership ratio of the second to the five largest shareholders as the variable of the check-and-balance ownership structure. The research shows that there is a significant positive correlation between ownership ratio of controlling shareholder and shareholders in power balance with the cash dividend payout ratio, the circulation shareholders shareholdings has a significant negative correlation with the cash dividend payout ratio. In private listed companies, the check-and-balance ownership structure does not play its role in corporate governance, on the contrary, it aggravates the agency problem of controlling shareholder. For example, when the shareholding ratio of other shareholders is large, they may have an intense fight over control with the largest shareholder to maximize private benefit of controlling. When the shareholding ratio of other shareholders is low, they may follow the majority shareholder.Our research focuses on private listed companies on the A-share stock market of Shanghai and Shenzhen stock exchanges from2008-2012which contains2886sets of observations of firms. The method to carry out empirical research is as follow, first analyzing descriptive statistics, second theoretical analysis and proposing hypotheses, last but not least building multiple linear regression model and analyzing regression results. The main idea of empirical research contains all-sample test and comparative study. We clarify the observations by degree of equity restriction. We conduct comparative analysis between specific groups and multiple linear regression analysis in each group. To ensure the reliability of results, we design robust inspection and show that the results do not change with the different settings of variables.