Research On The Proportion Of Institutional Ownership、Executives Overconfidence And Cash Dividend Policy

Research on cash dividend policy of listed companies in our country has experienced decades of development,has formed a lot of meaningful results,but most are based on the traditional dividend theory.With the development of behavioral finance,people’s behavior and psychology are applied to the study of cash dividend policy,there are some psychological impact on dividends to shareholders behavior research.In this paper,starting from the management psychology,research managers overconfidence influence on cash dividend policy.And with the constant improvement of corporate governance,institutional investors has received widespread attention and the supervision function in corporate governance is gradually expanding.Therefore,This paper further explores institutional investors making the impact of overconfidence managers cash dividend policy.This article select 2010-2014 A-share listed companies of Shanghai and Shenzhen Stock Exchange as the research object,using the methods,such as statistics,logistic model.In this paper use managers shareholding change and listed company earnings forecast deviation as alternative indicators of managers overconfidence.First analysis the present situation of the cash dividend policy research in recent years,and then explore institutional ownership,the relationship between managers overconfidence and the cash dividend policy.Study found that managers overconfidence on a company’s cash dividend policy has significant negative impact,the company’s willingness to pay and pay cash dividend level will reduce with the increase of managers overconfidence degree,higher managers overconfidence degree companies prefer to keep cash in enterprises,excessive confidence brought about by the excessive investment,etc.;Also found that the increase of institutional investors holding has positive influence in cash dividend payment willingness and strength of the listed companies.This paper further found that when the proportion of institutional investors is higher can abate overconfident managers don’t cash dividend will,and inhibition of overconfidence managers reduce the cash dividends.Institutional investors participating in corporate governance can be effective supervision of overconfident managers’ decision-making.Make managers pay more cash dividend.This article suggested that in the process of corporate governance and dividend decisions should be fully considered irrational psychological behavior of executive overconfidence bias,effectively avoid managers overconfidence irrational dividend decision brings negative impact on the company;To establish the corresponding incentive system to fully arouse the enthusiasm of institutional investors participating in corporate governance.