The Impact Of Ownership Structure On Dividend Policy Of Chinese Listed Company

Dividend policy is the decision by which a listed company allocates its earnings.Reasonable dividend policy can set up creditable reputation of a listed company in themarket and inspire investors' passion. Ownership structure is the base of corporategovernance, and one of the most important factors that influence the dividend policy.For the special capital-stock structure and shareholder in China, there are differentagency problems and dividend policy.The thesis discusses the relationship between the dividend policy and theownership structure from the aspects of properties of the controlling shareholder andratio of flowing share. The empirical anlysis indicates that inclination and degree ofthe dividend has a negative correlation with both state controlling shareholder andratio of flowing share.And it also shows that dividend policy in China does not accord to the westernagency-cost theory. The research comes up with the conlusion that the dividend policycan not be the effective method to solve the agency-cost problems but aggravates theconflict of interest, which is rather different with its countparts in the developedwestern countries.