Dividend Distribution And Its Impact Under The Perspective Of Managerial Ntrenchment

Dividend distribution is one of the important aspects to company’s managementand decision making. Rational Dividend distribution policy can help enterprise torealizing its maximum value and also more conductive to the long-term developmentof China’s capital market. With the development of economic, domestic listedcompanies’ dividend behaviors are becoming more and more often in recent years. Inorder to promote dividend distributions of enterprise, Securities RegulatoryCommissions of China have issued many laws and regulations to make stipulation ondomestic listed companies’ dividend conditions.Chinese and overseas scholars do a lot of researches on the company’s dividenddistribution behaviors from the angles of free cash flow, agency cost and signaltransmission and so on. However，researches on dividend distribution and itseconomic consequences under the perspective of Managerial Entrenchment is still inits infancy. So, it has definite theoretical significance. Domestic researches aboutdividend distribution focus on main board market mainly. However, China puts a lotof effort on small board of listed companies due to its many technical innovations.Hence, it holds a big development potential and has strong attractions to investors.Compared to main board market, small board of listed companies are more worthy ofexploring on new fields. Therefore, it has certain practical significance to research ondividend distribution of small board of listed companies.Using literature and empirical research combination research methods, thisarticle standing on the pointing of agency cost to do research on dividend distributionand its impact to Chinese listed companies’. Taking the samples of528Shenzhenstock exchanges between2011and2013to build multiple regression modelsaccording to agency cost theory and signal transmission theory. By makingdescriptive statistics, correlation analysis and robustness test, finally come to theconclusion that managerial entrenchment could significantly increased the listedcompanies’ wills of the cash dividend distribution and the cash dividend distributionof listed companies’ wills could promote the growth of enterprises’ value undermanagerial entrenchment.