The Influence Of Ultimate Controller On Cash Dividend Policy Of The Listed Companies In China

The dividend policy is not a new hot topic in recent years.The study of the dividend policy in the West has been greatly developed and perfected since 50 years ago.In the background of the weak protection of investors in China,the relatively concentrated ownership structure of listed companies and the complicated control methods,the controlling shareholders of listed companies have the ability and the motive to acquire the private benefits from the small shareholders' interests.The studies of La Porta etc(1999)show that the ultimate controller of the most listed companies can play an important role in the financial decisions production and management of the listed companies.The ultimate controller controls the listed companies complexly,which provides convenience for the controller of the company's assets to transfer the company's assets.Therefore,based on the theory of the ultimate controller,this paper studies on how the ultimate controller's the nature,the control right,the cash flow right and the separation of the two rights affect the cash dividend of the listed company in the unique capital market environment of our country,hoping to deepen and improve the the relevant theory of the dividend policy research.In this paper,through the empirical study of companies listed on the Shanghai Stock Exchange and the A-share listed on the Shenzhen Stock Exchange between 2006 and 2015.Firstly,the nature of the ultimate control of the listed companies affects the tendency to pay cash dividends.The listed companies whose ultimate control is non-state-owned nature tend to pay more cash dividends.Secondly,the higher the control rights of the ultimate controller are,the higher the cash dividend issued by the listed company is.Cash dividend is an important means by which the ultimate controller transfers money from a listed company.The greater the control rights are,the stronger the tendency to transfer funds through cash dividends are.Thirdly,if the ultimate controller's cash-flow rights is higher,the listed company is more likely to issue more cash dividend.Under the special capital market background of our country,the shares by the ultimate controller,which can not be traded,can not get the gains from the stock price rise,but only through the dividend distribution,so the maximizing interests drive them to use dividend policy to obtain benefits as much as possible.Fourthly,the higher the separation of the two rights of the ultimate controller is,the more the cash dividend paid by the listed company is,and the ultimate controller tends to share the cash dividends with the small shareholders.Fifthly,from the background,financing and other aspects,the private enterprises and the state-owned enterprises were compared to analyze the similarities and differences.Above all,the paper puts forward the relevant suggestions.