The Growth Of Companies,Institutional Investors And Dividend Policy

With the continuous growth of China's economy,The financing problem has plagued the development of the company,and has become an important factor to determine its success.Compared to equity financing and debt financing,internal financing of dividend policy has become an important means of financing,because of its lower costs,less restrictive conditions,more simple procedures and other advantages.Through the establishment of a reasonable dividend policy for internal financing,it is more and more favored by companies.For the listed company in Growth Enterprises Market,the same is true.The listed company in Growth Enterprises Market often consider the growth as a key index to meet the growing demand for capital and shareholders demand for compensation,when making dividend policy.It is of theoretical and practical significance to study the dividend policy of growth company.Moreover,with the process of Split Share Structure Reform and the strong support of the regulatory authorities,the institutional investors have played more and more important role,which changed the ownership structure of listed companies to a certain extent.As the important investors of listed companies,whether institutional investors will influence the dividend policy of growth company? For this study,predecessors are less involved.Through the review and summary of the domestic and foreign literature,This paper get the overview of the theory involving in the growth of companies,institutional investors and dividend policy,then on the theory analysis and empirical studies concerning the relationship among the growth of companies,institutional investors and dividend policy,and get the following conclusions:(1)With the increase of growth,the level of paying cash dividends will decrease,but the level of paying stock dividends will increase;(2)When the institutional investors shareholding percentage is higher,the relationship between the growth and the level of paying dividends will further increase.In response to these conclusions,the paper puts forward some suggestions:(1)The growing company should pay less cash dividends,pay more stock dividends;(2)According to the type of growth,the company should choose suitable for their own dividend policy;(3)The related departments should encourage institutional investors to subscribe for shares,at the same time to prevent the transfer of benefits the institutional investors carry out in the subscription process.The contributions of this paper:(1)The previous research on dividend policy mainly based on the main board market as the research object,this paper choose the GEM listed companies as samples to research the growth of companies and institutional investors to the dividend policy's effect,broaden the research scope of dividend policy samples.(2)This paper bring the growth of companies into the important factors that affect dividend policy decisions and examine it impact on the company's cash dividends and stock dividends,this can provide a new perspective on selecting dividend payment,so as to enrich the research of dividend policy.(3)Institutional investors are the important participants in the corporate governance,which has an important impact on the company's dividend policy,this paper studies the institutional investors impact on the dividend policy,can be found that institutional investors holding preference and deepened the understanding of the behavior of institutional investors in corporate governance.This not only has important reference value to the company dividend policy,but also conducive to reveal whether institutional investors will use its role in the company's dividend policy for their own behavior and damage the interests of minority shareholders.This paper is divided into six parts.The first part is an introduction,which briefly introduces the research background and research significance,the writing thoughts and research methods,and the framework of this article.The second part is the review of the domestic and foreign literature,including the analysis of the domestic and foreign scholars' research on dividend policy,summed up the results about the growth of companies and institutional investors to the dividend policy's effect.The third part is the overview of the theory involving in the relationship among the growth of companies,institutional investors and dividend policy,explaining the concept and the measures of the growth of companies,and the concept and the types of the institutional investors,summing up the concept and the theory of dividend policy.The fourth part of this paper is the theory analysis concerning the relationship among the growth of companies,institutional investors and dividend policy,and makes two assumptions in this paper: Hypothesis 1,With the increase of growth,the level of paying cash dividends will decrease,but the level of paying stock dividends will increase;Hypothesis 2,When the institutional investors shareholding percentage is higher,the relationship between the growth and the level of paying dividends will further increase.The fifth part is the empirical test concerning the relationship among the growth of companies,institutional investors and dividend policy,using descriptive statistics,correlation analysis,regression analysis,robustness testing and other methods to test the hypothesis in this paper.The sixth part is the conclusions and policy recommendations,according to the results of empirical research to this article conclusion,points out the deficiencies in the research at the same time.