The Research On Large Shareholder Governance And Cash Dividend Behavior

Share Concentration and segregation is important institutional springhead of large shareholder expropriation in Chinese security market,large shareholder governance is therefore an attractive research item. Share Concentration helps to reduce agency conflict between owners and managers because large shareholder has enough incentive to monitor managers,but it also leads to the other agency conflict between large shareholder and small shareholder.Under the institutional background, agency problem between large shareholder and small shareholder is an dominating form in Chinese security market. The prevenient research on large shareholder governance and cash dividend mostly classify large shareholder according to several large shareholders,so it underestimate Share Concentration degree of large shareholder. If tracing back to actual ownership and control of ultimate large shareholder, we discover that the several large shareholders of many companies belong to the same ultimate owner, which leads to surface share balance but actually imbalance. At the condition,if taking no account of ultimate large shareholder,it will bring the deviation and mistake of result.Therefore,the thesis research on large shareholder governance and cash dividend behavior under the frame of ultimate Ownership have certain theories and realistic meaning.The thesis regards Chinese security market A share listed company in 2005 as research object,combines with theories research and experimental research,taking experimental research as the thread. The thesis use synthetically such relevant theory and methods as corporation governance theory,statistics,accounting,finance,etc, carry on research to Chinese large shareholder governance and cash dividend behavior.The main research contents are as follows:(1) Share characteristic of large shareholder.Corporate ownership is measured by cash-flow rights,and control is measured by voting rights. Ownership and control rights can differ because of pyramiding and cross-holdings through multiple control chains.The ultimate owner is divided into nation,family(individual)and other three style basing on actual control large shareholder quality. (2) Experimental analysis on large shareholder cash dividend behavior. Considering the deviation problem of the sample choice, we adopt the Tobitâ…¡model method after use LS estimator and run the choice process regression.The result indicate that share characteristic of large shareholder can't completely explain large shareholder cash dividend behavior.large shareholder expropriation may be an effective approach.(3) Experimental analysis on large shareholder cash dividend expropriation degree.On the base of completely measure of large shareholder cash dividend expropriation degree,we use robust regression method and research the relation between large shareholder expropriation degree and cash dividend,share characteristic.The result indicate that large shareholder expropriation degree is significantly positive relation with cash dividend payout level,no significantly linear relation with large shareholder share characteristic, but positive U-form relation with large shareholder share characteristic.(4) Design approach to large shareholder and cash dividend governance mechanism. Adopting experimental method,we test large shareholder and cash dividend governance mechanism.The result indicate that large shareholder ownership concentration can't reduce agency cost and raise agency efficiency.large shareholder governance mechanism of Chinese listed company still exist in prodigiouss limitation.Cash dividend can reduce agency cost,raise agency efficiency, still exist in prodigiouss limitation.The absence of other corporation governance mechanism are important causation of large shareholder expropriation,which main exhibition as follow:"share balance no balance","independent director no independence","investor protection no protection".