| In recent years, cash dividend as one of the ways that return to investors has got community attention. GEM that started in 2009 appeared the phenomenon of high level of cash dividend. The companies in GEM are in high growth and whether the high level dividend is benefit for the minority investors is need for further research.There are two main ways in protecting the investors ’interests: one is capital gains formed by stock trading and the other is distributed dividends by the list companies. Most of the minority shareholders can only obtain the price deference gains through the sale of shares on the secondary market. However, the phenomenon showed in the dividend policy in GEM is high level transfer, distribution and bonus issue. The policy is totally different from the motherboard market. Whether the dividend policy is good for the GEM which need many funds to support is still uncertainty. In addition, there are many acts against the interests of minority investors like encroachment funds by major shareholder, related party trisection, providing false financial statements and so on. Therefore, the study to protect the interests of investors is significant.This paper combs the existing literature as the basis. Firstly, analyzes the current cash dividend distributed situation and the performance that minority investors’ interests are violated. Secondly, takes the system implementation level into account to redefine the protection of minority investors ’interests from the perspective of micro company organization. Select quality of financial reporting, controlling shareholder’ conduct, corporate management quality, return on investment, corporate integrity five aspects,eight indicators to build minority investor interests’ protection index. And then, select 2009-2012 listed companies in GEM as samples, using descriptive statistics, regression analysis, and comparative analysis to research the influence cash dividend payment on minority investor interests’ protection index. And the following conclusions:(1) the degree of minority investor interests’ protection without cash dividend is higher than the degree with cash dividend for listed companies in GEM.(2) The higher the level of cash dividends distributed, the lower the level of protection of minority investors’ interests. |
