Research On The Correlation Between Ultimate Control Person's Characteristics And Cash Dividend Policy

Dividend policy, as one of the most important company financial decisions, has always been a hot topic of financial management field. Listed companies who issued appropriate cash dividend can not only arouse the enthusiasm of the investors,but also can set up a good enterprise image. Because most of the listed companies in China are reformed from the state-owned enterprises, in a certain extent,the ownership structure of chinese listed companies is different from the western countries.In this paper, based on reviewing the domestic and foreign dividend theory,we make a literature review of the domestic and foreign scholars'research in the field of Shareholders' characteristics and cash dividend theory. With the special capital market of china, I analyse the characteristics of ultimate control person and the characteristics of cash dividend policy. On this basis, I divide the ultimate control person's characteristics into three areas:economic nature, controlling right and the separating extent of ownership and controlling right.Then I take the data of Chinese listed companies in the 2007-2009 as the research samples, respectively, I use logistic regression models and multiple linear regression model to carry on empirical study.This paper discusses the empirical study on the correlation between ultimate control person's characteristics (economic nature, controlling right and the separating extent of ownership and controlling right)and cash dividend policy (dividend trends, dividends degree).In logistic regression model, I analyse the correlation between ultimate control person's characteristics and cash dividend trends. The empirical results show that the non-state-owned ultimate control person are more willing to pay cash dividends; the smaller of the separating extent of ownership and controlling right,the dividend trends of listed companies is higher. In multivariate regression model, I analyse the correlation between ultimate control person's characteristics and cash dividend degree. The empirical results show that the non-state-owned ultimate control person pay more cash dividends; the smaller of the separating extent of ownership and controlling right,the dividend degree of listed companies is higher; the proportion of controlling right and cash dividend degree are related,with the increasing of the controlling right proportion,there is a "U" style of cash dividends paid ratio.