Corporate Governance Mechanism,Dividend Policy And Stock Price

The dividend policy of the listed companies will not only directly affect the profit of the shareholders,but also affect the stock price,which is closely related to the healthy development of the capital market.Therefore,the CSRC pays great attention to the regulation and supervision of the dividend policy of the listed companies.What factors affect the dividend policy?How does the dividend policy affect stock prices?This paper uses the annual data from 2007 to 2015 of all A shares in Shanghai stock exchange and Shenzhen stock exchange manufacturing industry as the research object,and uses the product market competition,capital market competition,salary incentive,equity incentive,ownership concentration,equity balance degree and so on to represent the corporate governance structure,uses the pre tax per share cash dividend,dividend rate,stock returns(cash dividend reinvestment)and so on to represent the dividend policy,expresses the stock price with the annual closing price of the enterprise and uses capital gains to indicate the rate of change in stock prices.Then makes some empirical tests about the financial factors that determine the dividend policy and the effect of cash dividend and its change on the stock price.Through the regression of the dividend policy decision of financial factors analysis:(1)Ownership concentration,equity balance degree,profitability,cash rich,asset liquidity,debt capacity have significant positive impacts on pre tax cash dividend per share;maturing debt,growth,the actual tax rate have negative significant effects on pre tax cash dividend per share.(2)Ownership concentration,equity balance degree,cash rich,asset liquidity,debt capacity,investment opportunities have significant positive effects on the dividend rate;profit ability,debt maturity,growth and effective tax rate have significant negative impacts on dividend rate.(3)Cash rich,debt maturity,growth,investment opportunities have significant positive effects on the stock return rate(cash dividend reinvestment);ownership concentration,equity balance degree,profitability and liquidity of assets have significant negative impact on the stock return rate(cash dividend reinvestment).Based the empirical test that how the dividend policy influence the stock price,we found that:(1)In the dividend policy variables,the pre tax cash dividend per share and the stock return rate(cash dividend reinvestment)have significant positive impacts on the stock price;the dividend rate has a significant negative impact on the stock price.(2)In the corporate governance variables,the salary incentive intensity,the agency cost,the ownership concentration and the equity balance have significant positive impacts on the stock price.Commodity market competitiveness,capital market competitiveness,equity incentive intensity,equity circulation structure and ownership structure have a significant negative impact on stock prices.From the above studies,we found that it has certain reference value for the company to make dividend policy,investors to make investment decisions,and the CSRC to supervise the listed companies according to the dividend distribution rate.First,dividend policy is an important part of corporate financial management.It has a direct impact on the interests of investors,the survival and development of companies,and the prosperity and stability of capital market.If profitability is strong,cash is abundant,liquidity of assets is strong,and the ability to borrow is strong,dividends can be paid more.If debts are mature,companies grow fast,and the actual tax rate is high,dividends should be paid less.Second,for investors,the increase of pre tax cash dividends and the increase of individual stock returns indicate that stock prices will rise,while the increase of dividend distribution rate indicates that stock prices will fall.Therefore,investors can make investment decisions according to the changes in pre tax cash dividend,stock return rate,dividend distribution rate and so on.Third,when the CSRC is making a policy of dividend distribution,they should consider the different effects of the profitability,cash rich,asset liquidity,debt capacity,debt maturity,growth,the actual rate of dividend and other factors on dividend,and the different effects of pre tax cash dividend,stock returns and dividend rate on the stock price.Dividend policy should be diversified and differentiated,suitable is good.Fourth,the improvement of corporate governance will contribute to the optimization of dividend policy and the supervision of the stock market.To increase the price of the stock by strengthening the intensity of salary incentive,the concentration of equity,the balance of equity and the increase of the agency cost.