Before And After The Split Share Structure Reform, Dividend Policy Empirical Analysis

Reform of non-tradable Shares brings a "historic" change and extremely important for Chinese capital market. In this background, this paper takes the point of Reform of non-tradable shares, based on in-depth analysis the impact of Reform of non-tradable shares on dividend policy, using 2003-2008data. It used cash dividends and dividend rate as dependent variable. Fixed effect of panel data was adopted to analysis factors that affect dividend policy. By comparing Reform of non-tradable Shares, empirical analysis may the following conclusion:the Reform of non-tradable Shares caused the non-tradable shares into tradable shares, changed the dual structure, truly right with same shares same rights. The state share holdings are significantly reduced. The phenomenon caused by the "big stock" was improved. The ratio of the major share holdings, controlling shareholder and other non-tradable shareholders rigged up to occupy small shareholder's cash dividend, were reduced. Large shareholders and small shareholder's are convergence. The higher of the equity balance, the stronger of supervise, in order to suppress the largest shareholder of "benefits" effect. at the same time, the listed companies profitability and corporate governance are greatly enhanced after Reform of non-tradable Shares. However, Reform of non-tradable Shares is a gradual process. In order to maintain the cash dividend payments of long-term sustainability, it is necessary to optimize ownership structure, improve the rules and regulations, internal governance and external supervision and other aspects to further consolidation of non-tradable share reform results.