Empirical Study On Control Structure And Political Preference Of Cash Dividends Of Listed Companies

Dividend policy is the financial strategies which listed companies' managers, who consider maximize the market value as basic goal, allocate their after-tax earnings and undistributed profit. Cash dividends policy is an important research area of the modern finance theory of corporate. Share of shareholders is one of the important factors which influence the dividends policy in listed companies. Chinese stock market has a special historical background and a special ownership structure. Therefore, ownership structure will be extended to control structure, in this paper. Starting from the relationship between control structure and dividend policy, this paper use empirical methods to study the preferences of dividend policies in Chinese listed companies at special background.Firstly, based on reviewing the theory of dividend policy, this paper uses research methods of document to study the issue of control over structure and dividend policy at home and abroad. Based on agent theory, it puts forward the hypothesis of benefit expropriation of cash dividends and cash saving concept and cash transferring concept. So that theoretical basis for this study is formed.Secondly, based on the analysis of the ownership structure, control structure and cash dividend distribution policy of listed companies recently in China, through the compare of ownership structure and control structure, this paper found that share only cannot depict control over of strong stockholder. So that, it introduces Banzhaf index to measure control over of strong shareholder and to set up a basic model of control over measuring.Thirdly, this paper takes EPS as dependent variable and takes control structure as independent variables. It adds parts of the control variable to empirical studies and uses multiple regression models to validate relationships between control structure of strong stockholder and Cash dividends policy. This paper studies the difference of dividend distribution in Chinese listed companies under the different status of holding level. It shows that companies prefer to distribute cash dividend on the complete control occasion. Through the comparison of different Dividend policy preferences, we can see that the dividend policy of listed companies are very different from o choose policy options and foreign countries. It is largely because of the special shares structure and control structure of listed companies.Finally, from the perspective of corporate governance, we give recommendations to improve the current ownership structure of China. I hope this paper to be valuable in practice.