Study On Ultra-ability Dividends Payout Based On Double Principal-agent Theory

Dividend policy is one of the important content of modern corporate financial management activities, which is related to the company's development and balanced between the interests of different groups of shareholders, is one of the essential elements of the whole securities market standardized operation and healthy development of the social economy. China's securities market was first established, dividend payout ratio is far lower than foreign listed companies, in order to improve the situation, since the beginning of 2001, the Commission introduced relevant policies to promote listed companies distributing cash dividend, but these mandatory provisions improve our regardless of dividend distribution status at the same time, but also to send the current trigger abnormal phenomenon, which includes ultra ability dividends payout. Ultra ability dividends payout caused a decline in retained earnings of listed companies, listing Corporation to carry out external financing, increase financial risk, damage to the sustainable development of the enterprise. Due to the characteristics of ownership structure of China's listed companies with equity trading and equity concentration, commissioned by the agency problem will have a double meaning. The dual principal-agent problem and the agency problem between controlling shareholders and minority shareholders is particularly prominent. In existing in the controlling shareholder of listed companies, managers become the spokesman of the controlling shareholder and dividend policy will cater to the needs of the controlling shareholder interests, satisfy the preference for cash dividend, without taking into account the interests of small shareholders, or even the company's development. Therefore, it has a certain significance to study the problem of the ultra ability dividends payout under the dual principal-agent theory.This paper describes the research background, combs the relevant literature and related theory, and then declares the statistical analysis of listing corporation of China's ultra ability situation and theoretical analysis with a double principal-agent theory. In this paper, the C&D INC. as an example, through the analysis of the cash dividend distribution from 1998 to 2013, that it has long been super ability to send. In this paper, based on the double principal-agent theory ultra ability dividends payout of C&D INC. is analyzed. It is found that the controlling shareholders through ultra ability dividends payout to against the interests of small shareholders,and managers also and controlling shareholders to share the profit distribution of the company, and then accordingly put forward related suggestions.