The Influence Of Separation Degree Of Two Rights On Cash Dividend Policy

Cash dividend policy is one of the important financial policies of listed companies.For a long time,what is the essence of dividend policy has been a hot and difficult issue in academic circles.Traditional dividend theory focuses on the agency conflict between the management and shareholders,but in this series of literature on law and finance,they find that in most countries,the agency conflict of companies is not between the management and shareholders,but mainly between major shareholders and small shareholders.La Porta et al.(2000)pointed out that dividend policy may become an alternative means to solve the conflict between large shareholders and small shareholders in the case of imperfect legal system.However,many domestic studies have found that dividend policy may become a tool for the tunneling of major shareholders.Especially when ultimate controller' vote right deviate from ownership,the controlling shareholder using the advantage control rights to maximize their own interests,maybe in this time,cash dividend policy neither be "benefits" return on investment between small shareholders and large shareholders,nor the alternative mechanism of agency problems,but the tool of controlling shareholders encroach on the interests of minority shareholders.During the financial crisis in southeast Asia,there were many cases of controlling shareholders ransacking companies to transfer assets and drain profits for their own interests.When the macro environment has changed dramatically,the encroachment may become more serious.At present,domestic scholars rarely make in-depth analysis on the tunneling of major shareholders by dividend policy in combination with the changes in the macro environment.This article selects 2013-2017 a-share listed companies as a benchmark study sample,adopting Logit model and Tobit model to analyze the influence of ultimate controller's separation degree of two rights on cash dividend policy,and use the event of the stock market crisis in 2015 as external shocks,through comparing the cash dividend payments before and the after crisis,research the impact of controlling shareholder's two rights separation degree on the company's dividend policy,the results showed that:(1)the higher of the first big shareholder's holding stocks,the company will choose higher cash dividend policy in order to the cash dividend become tunneling tool for large shareholders;(2)the greater of the ultimate controller's separation degree of the two rights,the more inclined to choosing higher cash dividend policy,and the degree of separation of the two rights intensifies the encroachment of the controlling shareholders;(3)when control right big than 20%,if the two rights are separated,compared with the situation before the stock market crisis,after the stock market crisis,it is more common for the ultimate controller to use cash dividend policy to carry out tunneling.Based on the above research results,this paper believes that the cash dividend policy is the ultimate controller's tool for encroaching interests from minority shareholders,and it has not been alleviated even in the period when the company is faced with the rapid change of the macro environment,such as the stock market crisis.Therefore,this paper suggest that companies should choose reasonable cash dividend policy,optimize the equity structure of listed companies,and improve the relevant laws about protecting the small and medium-sized investors,as the same time,the small and medium-sized investors should choose rational investment and avoid blindly following the trend.Despite the major shareholder is the common problems,this paper further from the perspective of ultimate controller's two rights separation degree on the cash dividend policy,and combining with the macro environment of dramatic change a sudden event to study the dividend policy of listed companies,combining macroeconomic environment with micro enterprise behavior,and it provide empirical evidence from China stock market crisis to rich the research of the cash dividend policy in crisis period.