Research On The Influence Of Institutional Investors’ Shareholding On Cash Dividend Of Listed Companies

China’s securities market has been developed for more than 30 years.Compared with the developed markets in Europe and the United States,there are still problems such as imperfect systems and regulatory deficiencies in China.Although the Securities Regulatory Commission has repeatedly issued relevant policies urging companies to pay dividends,there is still the problem of difficult and low dividends in China.Reasonable cash dividends can protect the legitimate interests of market participants,enhance investors’ confidence,and contribute to the stability and smooth development of the company’s share price,so the current situation of cash dividends in China needs to be improved urgently.In recent years,with the growing group of institutional investors,their voice has been expanding,and their positive role in the corporate governance system and their influence on cash dividends has been increasing.As mature market participants,institutional investors tend to hold a larger number of shares in companies,and therefore actively participate in corporate governance and improve cash dividends for their own benefit.On the one hand,they can put pressure on the management by "voting with their feet",and on the other hand,they can actively participate in the management of the company by exercising the right to speak,vote or seek proxy voting rights,thus increasing the distribution of cash dividends.Based on the theoretical analysis of dividend policy and institutional investors,this paper proposes corresponding hypotheses,selects relevant data of A-share listed companies in China from2016 to 2020 to establish a model,and empirically explores the impact of institutional investors’ shareholding on cash dividends.After that,they are classified into two categories(pressure-resisting and sensitive)according to whether they have other interests with the company,and the impact of the two types of institutional investors on cash dividends is explored separately whether they are different.In addition,this paper divides listed companies into two groups(one in the east and one in the central,western and northeastern part of the country)according to the economic development level of the province in which they are located,in order to further explore whether the different external environment makes the effect of institutional investors on cash dividends different.It is found that:(1)Institutional investors’ shareholding can significantly increase cash dividends.(2)The effect of heterogeneous institutional investors on cash dividends varies significantly,with positive effects for pressure-resistant types but no significant effects for pressure-sensitive types.Breaking down the former finds that QFIIs promote cash dividends better than social security funds,which in turn outperform securities investment funds.(3)The promotion effect of pressure-resistant institutional investors on cash dividends is related to the level of regional economic development,and its promotion effect is more significant in the relatively economically backward regions.Finally,according to the research findings,corresponding policy suggestions are made to improve the status quo of dividend distribution in China by taking into account the actual situation in China,which provides new ideas.