The Influence Of Listed Company’s Internal Governance Structure On Cash Dividend Policies

Dividend policies are an important way for listed companies to transfer corporate governance & operating results to investors. However, negative phenomenon do exist now, such as dividend policies are arbitrary & unreasonable, companies don’t pay dividends for long-term, big shareholders expropriate the free cash through dividends, companies have weak awareness of rewarding investors. In order to explore why dividend policies present these phenomenon, this paper studies these factors that influence company’s cash dividend policies in the perspective of company’s governance structure.After analysis the theories, this article proposes some hypotheses. It chooses Hi Index, Z Index, the proportion of state-owned shares and legal person shares, the ratio of institutional investors to measure ownership structure, the ratio of independent directors to measure Board’s independence, the ratio of managerial stockholding as main explanatory variables. Through SPSS 19.0, the paper proceeds empirical study,& brings up these related conclusions:The ratio of listed companies which pay dividends represent an increase. They began to focus on the return for the investors, but there is still abnormal behavior of dividend and the continuity and stability of dividend policies is low. The higher of the ratio of the first shareholder is, the stronger of its decision-making power is. Finally, the first shareholder is more inclining to occupy free cash through the high dividend payment. The lower of the ratio of state-owned & legal person shares is, the higher of the distribution of cash dividend is. The lower of Z index is, the higher of distribution of cash dividend is, but the influence is not significant. The higher of the ratio of institutional investors holding is, the higher of the distribution of cash dividend is. There is a significant inverse relationship between The independence of the board of directors & cash dividend. Instead, if the managerial ownership is more larger, the distribution of cash dividend is more larger.The economic consequences of cash dividend policies is a mixed blessing.Rational dividend policies can not only transfer the signals of stable development, but also attract investment, help to make corporate governance structure better, eventually lead to the development & perfection of the capital market.