Research On The Split-share Reform’s Impact On Dividend Distribution Of Listed Companies

Institutional equity division is the distribution of non-tradable shares and tradable shares in order to protect the actual state holding a dominant position and stable capital markets of the capital market. However, in the process of rapid development of the capital markets, this situation caused a split with different price stocks, stocks with different weights, with shares of different risk and other issues. Therefore, in 2005, Chinese State Council started the split share structure reform which aimed to break the outstanding shares and non-tradable shares of Stock Markets, eliminate differences in the circulation system of non-tradable shares and tradable shares. From the regime view to solve the irrational financial problems of listed Companies, there is of profound significance to study this reform a decade later, which has inestimable value on dividend distribution, corporate governance structure and the of development capital market in China.This article first introduces the development of China’s capital market, problems and history of tradable shares reform and other research background. Then reviewed domestic and foreign research status related with the equity division reform, dividend distribution and equity division reform impact on dividends, introduced the general idea, content and research methods used in the article. Secondly, on the one hand, this paper explores the impact of the equity division reform mechanism on dividends distribution, on the other hand, compares the data of pre-split share structure reform period, the initial split share reform period and the equity division reform effect period using cash dividend amount and proportion, the number of companies issuing stock dividends and accounting, average cash dividend rate and abnormal cash dividend ratio. From the result of the above four indicators, it came to a conclusion that the equity division reform of China’s listed companies have a positive impact on the healthy development of China’s listed companies, promoting a sound and robust structure of China’s capital market. Finally, the article points out the shortcomings that exist in the research process, provide a reference in future studies.The study divided the listed companies into different size and selected data of listed companies from 2001 to 2013, which expands the data sample, makes up the period defects of other scholars and also improves the data content and data classification and comparison, making research more convincing and showing the long-term effects of the equity division reform.