| "Ultra-ability Dividends Payout" refers to the cash dividend distributing behavior which is beyond the listed company's operation or cash flow ability. Using the sample of Chinese A-share listed companies during the period of 2007 and 2009 which is after the reformation of non-tradable shares, and methods of mean test, correlation analysis and logistic regression model, this paper did some theoretical analysis and empirical research on related issues of "Ultra-ability Dividends Payout" behaviors in Chinese listed companies. The test of the influence "Ultra-ability Dividends Payout" had on companies'performance showed that "Ultra-ability Dividends Payout" was evidently bad for companies'profitability. And the research on the influence the insiders of companies, such as big-share holders, had on "Ultra-ability Dividends Payout" indicated that during the sample period, the companies'ultimate controller had manipulated the companies'Cash dividends policy to satisfy its desire for cash, and this behavior was one to blame on the companies'"Ultra-ability Dividends Payout". In addition, this paper had tested the effectiveness of Chinese major institutional investor and part of the corporate governance mechanisms in improving the management efficiency and lowering agency cost, thus reducing the occurrences of "Ultra-ability Dividends Payout", the result revealed that in China the independent director system, the equity incentive system and the salary incentive system had not perform well. Based on this conclusion, this paper then gave a series of related policy suggestions. This paper's study had some reference value on further theoretical study of "Cash Dividends and Investor Protection" and the formulation of investor protection policies. |
