A Study For The Effect Of Equity Incentive On Cash Dividend Policy In Chinese Listed Companies

Equity incentive and cash dividend are two important management tools in the management of corporation.The scholars have studied the cash dividend policy from different angles and got abundant achievements,by comparison,scholars have done less researches on the equity incentive system.Because the equity incentive was stared to be used too late.However,there are also some research results.But there are few people study whether the equity incentive will make effect on cash dividend.And the current studies have not achieved the same conclusion.In this paper,we select the balance panel data of Chinese listed Companies from 2010 to 2014 to do the research.This article investigates whether the implementation of equity incentive will make effect on the company's cash dividend payment tendency and checks how the equity incentive in different degree and different models make impact on the cash dividend payment level.The findings are as blow:(1)The implement equity incentive has a significant effect on the willingness to pay cash dividends and the listed company management layer have self-interested behavior;(2)The equity incentive of different degrees have different effect on cash dividend payment,the greater degree of equity incentive,the company's cash dividend payout ratio is greater;(3)Stock option is one mode of the equity incentives,which has the greatest impact on the cash dividend policy;(4)the company scale,debt pressure,profitability,cash flow,ownership concentration of Chinese listed company also have significant impact on the level of cash dividend payment;(5)The impact of the growth of the company on the cash dividend after the implementation of equity incentive will be changed;(6)After the implementation of equity incentive,chairman and general manager of the company by the same person will affect the company's cash dividend payment level significantly.This paper also found that:The cash dividend payment level is relatively low and the implementation of the equity incentive is not enough in Chinese Listed Company.Young listing Corporation are more keen to launch equity incentive plan.