Equity Structure And The Empirical Relationship Between Cash Dividend Policy Of Listed Financial Analysis

The formulation and implementation of Cash Dividend Policy play an important role incorporation financial management; it will influence the interest of different partiesincluding the company, its shareholders, creditors and other stakeholders. And theDividend Policy is essentially the result of unceasing negotiations between differentinterest parties. Meanwhile, the Ownership Structure is the important factor which candecide the competitive strength of each party, and therefore the formulation andimplementation of Cash Dividend Policy will be affected by the Ownership Structureconsequently.The financial industry has its unique particularity: it has no physical assets flow and theOwnership Structure is relatively complicated than other industries. In the upcomingfull-circulation era, great changes have taken place in the Ownership Structure of financialindustry, thus studying the influence of the Ownership on the Cash Dividend Policymaking has significant meaning.In terms of the influence of Ownership Structure on the Cash Dividend Policy, this paperfirst sums up the research achievements from different perspectives, and then theoreticallyanalysis the impact of the Ownership concentration and the top shareholder on CashDividends Policy. After that, this paper represents and summarizes the status quos of theOwnership Structure and Cash Dividend Policy in financial industry in detail. At last, thispaper chooses26listed companies as the sample and makes an empirical analysis to provethe relationship between the Cash Dividend Policies and Ownership Structure through thevariables of Ownership Concentration and Balances.The results show: the Cash Dividend is positively related to the Ownership Concentration,which means the greater power of the largest shareholder, the more cash dividends; and theCash Dividend is negatively related to the Ownership Balance, which means the morerelative power of the other major shareholders to the top shareholder, the less cashdividends. And once a “collusion” exists among the large shareholders, it is easy toconspire to pay more cash dividends.