Study On The Influence Of Proportion Of Institutional Investors Shareholding On Dividend Payment Level

With the continuous development of the global capital market, institutional investors arealso rapid growth, they gradually become important investors in capital market of our country.The proportion of institutional investors holding increased brings its own more discourse rightin holding companies, to put forward opinions on the company’s dividend policy.This articlemainly discusses the institutional investors holding ratio affect the level of dividend payments,check whether institutional investors to perform the "shareholder activism", supervise thelisted company’s dividend payment levels and participate in the development of dividendpayment policy. The innovation of this article is to stock dividend into the study, previousscholars only research institutional investors holding impact on the level of cash dividendpayment, in this paper, based on it also study the institutional investor shareholding impact onthe level of stock dividend payments.First of all, the factors affecting the level of dividend payment and the impact ofinstitutional investors on the level of dividend payment was summarized, the existingliterature identified in this paper. So the author determines the research direction and thevariable selection. Then this paper states relevant theories, and the institutional investorsholding ratio affect the level of dividend payments to theoretical analysis, reveals theinstitutional investor shareholding proportion effect to the level of dividend payments, get thehypothesis of this article, which laid a theoretical foundation for the empirical study of thisarticle. In this paper, the dividend is divided into cash dividend and stock dividend is studiedrespectively, after the first study of institutional investors as a whole, and to study theinstitutional investors can be divided into nine categories. Because at the end of last year’sdata of institutional investors to influence the level of dividend payments, so institutionalinvestors in the empirical data from2010~2012, other data selected from2011~2013is togrant cash dividend and stock dividend of a-share listed companies. The model choosesmultiple linear regression model, this article has carried on correlation test and multiple linearregression analysis. This paper argues that the overall institutional investors can perform "shareholderactivism", and influence level of dividend payments. With the improvement of overallinstitutional investor shareholding, cash dividend distribution level are also growing.Institutional investors to participate in the development of the listed company cash dividendcan reduce the agent cost, inhibit management opportunism. Besides, Operating cash flowsand Earnings per share more, the company will be more cash dividend, and the growth ofcompany will chooses less dividend. After the study on classification in the institutionalinvestors, social security fund and non-financial listed companies can exert positive influenceon cash dividend payment levels, and securities investment funds and brokerage shares is anegative impact on cash dividend, they prefer stock dividend. With the shareholding increaseof securities investment funds and securities firms, cash dividend payment level decreased,while the stock dividend payment levels will increase.