The Influence Of Ownership Concentration Of Private Company On Cash Dividend Policy

Dividend policy is the main form of distributing profits to the shareholders in listed companies.It is one of the important financial policies which both related to the interests of shareholders and the company's future decisions.The research object of enterprise cash dividend policy is mostly all of the listed company rather than private enterprises.With the continuous development and progress,private enterprises in all walks of life have been gradually occupied the important position.So it is necessary to focus on exploring the relationship between ownership concentration and the cash dividend policy in private enterprises in order to providing the reference for private enterprises in the process of madding cash dividend policy,so that the relevant supervision and regulation department have more reference.This paper mainly uses the method of empirical research to explore the impact of private enterprise ownership concentration on cash dividend policy.First of all,in the basic research section,by looking up and reading the relevant literature in this field,the research further induces and summarizes the research status at home and abroad and the related theory and concepts,including: the concept of the ownership concentration and the concept of cash dividend,dividend policy theory,agency theory,etc.Then the research raise the hypothesis of the impact of controlling shareholder's shareholding ratio on private companies' cash dividend policy,the impact of free cash flow on private companies' cash dividend policy,the impact of equity checks and balances on private companies' cash dividend policy.Secondly in the empirical research section,the samples are all the private listed companies of the a-share market from Shanghai and Shenzhen stock market,sample observation period selected from2010 to 2014.On the study of the influence of ownership concentration of private company on cash dividend payout rate,this paper chooses 414 private companies' observed date.This paper uses EVIEWS statistical software for multiple linear regression analysis,and adopts the method of empirical analysis to explore the impact of ownership concentration of private enterprises on its cash dividend policy.Then the conclusion is drawn that in the private company there is a "U" type relationship between the controlling shareholder's shareholding ratio and the cash dividend distribution intention and the cash dividend distribution ratio.The cash dividend policy of the private enterprise is determined by its free cash flow.There is a negative correlation between the free cash flow and its cash dividend distribution intention and the cash dividend distribution rate.The proportion of the shareholding ratio of the private enterprise checks and balances ispositively related to the cash dividend distribution intention and the cash dividend distribution ratio.Finally,according to the conclusion of this research,put forward some suggestions on how to optimize the concentration of private enterprises and cash dividend policy from internal and external aspects.It is suggested that private enterprises should be strengthened to cultivate diversified and specialized investment subjects,and make the free cash holdings rational.From external aspect it is suggested that make standards about the continuity of private enterprise's cash dividend distribution,improve the private enterprise cash dividend policy disclosure transparency,strengthen the supervision of private enterprises cash dividends and the protection of small and medium investors' interest.The study enriches the theoretical research and empirical research about the cash dividend policy of listed private companies in China and can provide reference for the future related research.The research of the impact of ownership concentration on cash dividend policy research in private enterprises can provide experience for the effective governance of private enterprises in domestic market data,and improve the regulatory of relevant authorities.