A Study On The Influence Of Ownership Structure Of Small And Medium - Sized Listed Companies On Dividend Policy In China

Dividend policy is one of the key profit distribution policies to the listed companies.It is of importance to the existence and development of the listed companies. Dividend policy is guideline of dividend distribution and has close tie to company investment and financing. And also it contributes great benefit to shareholder as it is one of resources of investment profit. How the listed companies schedule the dividend policy has great practical significance:persistent dividend policy establishes good image of the stable operation of listed companies and spreads active messages to the capital market, strengthens the confidence of investors towards the operations of listed companies. The ownership structure is the cornerstone of corporate governance. It decides the structure of corporate governance and has important impact on listed company decisions. Different ownership structure decides different dividend policies. China’s capital market originated from the reform of stated-owned companies which means the listed companies’ownership structure has distinctive features.In the year of 2004, Chinese government establishes the small and medium-size capital market in the Shen Zhen stock exchange. On contrary to the main-board capital market, higher dividend distribution of the small and medium size listed companies attracts popularity among the investors, stimulates the emotion of investor to invest the small and medium size capital markets and push the rapidly development of the small and medium size capital market. Until 2013,the sum of the SMSM company adds up to 701 and presents a further expansion trend. From the perspective of ownership structure, research on the ownership structure influence about the policy of dividend among the small and medium size capital market, benefits us to explore the mechanism how the corporate governance exert impact on dividend policy. This research find a way to make further efforts on developing the small and medium size capital market, improves the benefit of capital market to small and medium size companies.This paper researches on the ownership structure affects the dividend policy from the aspects of ownership attribute and degree of concentration about stock ownership. Through the literature review, research at home and abroad in the past few years. It confirms that the result is almost all research takes the positive attitude that the ownership structure affects the dividend policy. The differences are the perspectives to do such research. In foreign countries scholars pick the ownership of manager layer and degree of concentration. At home, scholars choose state owned ownership and legal person ownership and degree of concentration.By screening the listed companies from medium and small capital market during the year 2004 and 2013, this paper collects the index about stock ownership attributes and degree of concentration and uses multiple linear regression to do measurement research. The outcome represents that the stock ownership attributes and degree of concentration has distinctive relationship of dividend policy. Cash dividend model represents better ability of explanation than bond dividend model.In the cash dividend policy linear regression model, the cash dividend payment rate has no linear correlation with state owned share; and has negative correlation with legal person owned share and Herfindahl Index; has positive correlation to public owned share, the first shareholder and equity balance degree.In the stock dividend linear regression model, stock dividend payment rate has no correlation with state owned share, public owned share and equity balance degree; has negative correlation with legal person owned share and first shareholder; has positive correlation with Herfindahl Index.Theoretical and empirical research on the basis of the results, and put forward the corresponding policy recommendations, such as (1) optimization of stock ownership of the medium and small capital market, enhance the introduce of strength about institution investors to improve the multiple of stock ownership.(2) Improve the actual liquidity of stock ownership to change the highly concentration of stock ownership.(3)Advocate the civilization of corporate governance, strengthen the balance of stock owners to ensure the optimism decision about company (4) Perfecting the information disclosure system, Strengthen the board small and medium-sized listing Corporation and investors counseling education(5) Strengthen the system construction of the small and medium-sized market, safeguard the rights and interests of minority shareholders(6) The micro environment optimization company dividend assignment.