The Study On The Impact Of Corporate Governance On Cash Dividend Policy Of China’s Listed Commercial Banks

As one of the core content of corporate financial decisions, cashdividend policy appeals a lot of attention because it is related to the interests of differentparties. These problems such as why one company distribute cash dividend, how muchthey pay and how long this behavior can last for all central points. To find the source ofcash dividend distribution behavior, we need to explore the real reason of the cashdividend. Different conclusions may be reached through research from different anglesas a starting point of cash dividend distribution behavior. In recent years, cash dividendagency theory has got much recognition in academic circle. Agency problem is theessence of the corporate governance, through which we can assume that corporategovernance also has explanatory power for cash dividend policy.Commercial banks are the lifeblood of the industry in China due to undertaking theimportant intermediary domestic financing function. With its unique industrialcharacteristics, no matter as for the supervision or the management, commercial banksare more complicated compared with other industries. Especially in the process thatnon-tradable shares are achieving full circulation in our country, great changes havetaken place in corporate governance structure of listed banks. The study of the influenceof corporate governance on cash dividend policy of listed banks in our country is full ofimportant practical significanceAs for the influences of corporate governance plays on cash dividend policy, thispaper first discusses the impact that listed commercial banks’ corporate governance oncash dividend policy on the basis of reviews on the existed research results, for the next,describes and summarizes the current situation and characteristics of the corporategovernance and dividend policy of the16listed commercial banks in China,at last selects related indexes measuring the corporate governance and investigates the effectscorporate governance plays on cash dividend policy on the perspective of analysis,the16listed commercial banks presenting as study objects,Empirical research indicates that the share proportion of the largest shareholder ispositively related, that is to say the stock equity is more concentrated, the banks tends todistribute more cash dividend, so is with the share proportion of the second largestshareholder. Self-serving behavior of the largest shareholder can be restricted with thesecond largest shareholder so that more cash dividend will be granted. The moreindependent directors participate in the management of banks, banks are to give outmore cash dividend. Above all, the research result of this paper supports the outcomemodel of LLSV.