An Empirical Study On The Relationship Of Ownership Structure And Dividend Policy Of Listed Companies

The dividend policy and the ownership structure of listed companies are widely concerned on the Chinese stock market. Reform of non-tradable shares was carrying on in 2005 and it aimed at breaking the boundary of the dual structure of tradable and non-tradable shares, so as to optimize the ownership structure. Under the big background of Reform of non-tradable shares, this paper mainly focuses on the influence of the ownership structure on the dividend policy of listed companies in China.Firstly, on the basis of previous research, this paper uses descriptive analysis to research the characteristics of ownership structure and cash dividend policy; then the paper takes the listed manufacturing companies at the end of 2006 having been implemented as an example and uses Factor Analysis and Multiple Regression Analysis to study the relationship of cash dividend policy and ownership structure.The results of the empirical analysis reveal that, first, the proportion of the tradable shares is negatively related to cash dividend per share, namely, the greater the proportion of tradable shares, the lower the amount of cash dividends; second, the ownership concentration is positively related to cash dividend per share, that's to say ,the controlling stockholder takes significant effect on the decision-making of the dividend policy; third, the proportion of legal-person shares is positively related to cash dividend per share significantly, and the proportion of the state shares is positively related to cash dividend per share but not very significantly;fourth, cash dividend per share is insignificantly correlated with the second major stockholder and the second to the fifth major stockholders.