Study On Dividend Policy Of Listed Family Firms In China

Family enterprises have been the typical type of enterprise across the world and have taken an important position in global economy.In recent years,family enterprises in China have taken a strong momentum in its path of development.They have their unique features as well as shortcomings.As the market competition is becoming fiercer,it poses even more difficulties for family enterprises to develop themselves and to be handed down to next generations.So how to run and develop family enterprises has become an issue that has attracted a lot of attention.Dividend policy is one of the key topics in modern financial theory.There have been continuous studies on dividend policy,but none of them have drawn a recognized conclusion.Therefore,the mystery of dividend has become a common object of study for scholars at home and abroad.The dividend policy for listed companies is of great significance since it touches the benefit of shareholders and creditors as well as the future of the company.On the one hand,it is the extension of the capital raising and investment of one company;on the other hand,proper dividend policy can not only help establish the company image but also encourage investment into the company.This thesis takes agency theory as the theoretical guidance to analyze the real case in securities market.The case analysis is based on the dividend policy of Fuyao Glass under the control of Cao Dewang and his family.Also,in the context of China's real situation,the author analyzes the role of controlling shareholders play in the dividend distribution of listed enterprises and the impact on different parties,therefore to figure out the motives and reasons behind the dividend policy formulated by controlling shareholders.It will complement the existing explanations to the dividend mystery;provide solid proof to deal with the agency issue between controlling shareholders and minority ones;help people to better understand the agency theory,look at the dividend distribution of listed family enterprises in a more rational way and assess the capital market properly.This article is divided into six parts,the first part is introduction,mainly narrates research's background,significance,and writing ideas and methods,etc,also reviews the dividend policy research achievements of domestic and foreign scholars,makes the appropriate comments and finally puts forward the whole framework;the second part outlines the theory of dividend policy of family listed companies,describes the definition and characteristic of dividend policy,the relevant theory of dividend policy,the main influence facts of dividend policy,reasons of major shareholders controlling dividend policy and basic situation of dividend distribution in China;the third part is the introduction of FYBL's dividend policy case study,this section briefly describes FYBL's financial and ownership structure,focusing on describing FYBL's dividend distribution,and summed up the characteristics of its dividend policy by comparing analysis;the fourth part is the problem of its dividend policy and reason analysis about that,from the major shareholder's benefit drive,ownership structure is under major shareholder's control,the shares held by major shareholders is restricted shares,government guidance affect the company's cash dividends such aspects as deep reason analysis of FYBL's dividend policy;The fifth part of the article is according the case study of dividends above mentioned,to summarize its experience and get the inspiration.The analysis of it concentrate proposal for the equity structure optimization,the complete of the commitment mechanisms of inner company,increase the effective of the restriction mechanism for the major stockholders.The specific measures include:(1)Spur on the reasonable of ownership structure by balance the interest,expand the strategy investor,and raise the amount of the structure investor.(2)Perfect the inner commitment mechanisms by tight the supervisors selection,strengthen the duty of the supervisor's job,raise the informed and supervision right of the independent director(3)Adequate the supervise system by keep the equality between the small and the medium shareholders,raise the degree of the participation for small and medium shareholders,strengthen the control power.The last part is to summarize the whole article and point out where the weakness is.