The Influence Of Equity Structure Of Private Listed Company On The Cash Dividend Policy

Now more and more companies realize the importance of dividend policy, sothere are more and more companies began to pay attention to dividend distributionproblems. But the issue of the distribution of the dividend policy is very complex, sothe dividend policy also has been one of the core content of financial management.Dividend policy not only relates to the economic interests of the company’sshareholders, but also affects the company’s future development, the formation ofdividend policy is the result of the game between different interest groups, and theequity structure is the key factor that decides the strategy choice of various interestgroups. Due to special equity structure in our country, so, for a long time, China’sownership structure and dividend policy attract a large number of domestic andforeign research workers, they also gives a rich theoretical and empirical studies,demonstrate the relationship between the problems from different angles, but so far,there is not a agreement to the relationship between them. In today’s China, perfectingthe financial market and the economic system reform increasingly deepened, thevigorous development of Chinese private listed companies, as a force, in our countryand even is on the world stage is getting more and more important role. But, thepresent research on dividend policy of private listed company is less, and the researchon the degree of marketization in private listed companies on the impact of dividendpolicy is rarely. So the study about private listed company ownership structure andmarketization of the effect on cash dividend policy is very important.This article mainly from two aspects to study the private listed company’sdividend policy, the first aspect is private equity structure of listed companies, mainlyin the first big shareholder ownership and equity balance degree to describe the ownership structure; the second aspect is from the company of different degree ofmarketization. First of all, this article reviews the research results of the domestic andforeign about the ownership structure and the marketization of cash dividend policy.Secondly, in this article, the related concepts are defined, and the characteristics ofprivate listed companies and their present situations of dividend policy are analyzed.Then, in order to in-depth study of the problem, this paper constructs the logisticregression model and Tobit multivariate regression model. Finally, this paper uses theChina’s marketization index data which is provided by Fan Gang, Wang Xiaolu(2011),uses the data of private listed companies from2007to2011as sample and gives thedescriptive analysis, correlation analysis and regression analysis.From the descriptive analysis of this article, we can know that Chinese privatelisted companies are willing to distribute cash dividends, but the distributing cashdividend level is slightly low, the first big shareholder shareholding is generally high,other shareholders of the company can affect the first big shareholder, and thedifference of the marketization degree all over the country is very big. From theanalysis of correlation we can know that, the higher the proportion of the first bigshareholder holds, the higher the degree of regional marketization, the higher the levelof private listed company cash dividend payments. Private listed companies equitybalance degree is higher, the lower the level of cash dividend distribution. Theempirical results found that the first big shareholder’s stake positively related to theprivate listed companies cash dividend; Equity balance degree is negatively related tothe private listed companies cash dividend; With private listed company cash dividendis associated with the degree of marketization. And marketization on the relationshipbetween the ownership structure and cash dividend policy has inhibitory effect.