Research On The Relationship Between Ultimate Controller's Cash Flow Rights And Dividend Policy

As the last link of the distribution of enterprise value,the dividend policy connects the production and operation activities and the investment and financing activities of the enterprise.The dividend policy is not only the result of the balance between the enterprise's own development and the legal policy,but also the embodiment of the mutual game state of the stakeholders.A reasonable dividend policy can not only maintain the good operation of the enterprise and healthy development,but also can transmit the signal to the market that the company developed well,inspiring the investors to continuously invest in the company,which helps to maximize the value of the company,it is very important for the development of investment,the company and the capital market.Since the reform and opening up,the private enterprises in China have developed rapidly and have brought vitality to the market economy.The listing of high quality private enterprises has brought vitality to the healthy development of domestic stock market,and has made great contributions to the improvement of multi-level capital structure in China's capital market.At the same time,with the gradual improvement of information disclosure system and the publicity of stock market data,it is possible to study the arrangement of ownership structure,ownership and management rights and dividend policy of listed companies.However,the governance structure of private enterprises still needs to be perfected,and the lack of protection mechanism for minority shareholders leads to the "tunneling" of listed companies by making dividend policies that are favorable for controlling shareholders.The research of dividend policy has gradually become a hot spot in the field of corporate governance.Based on the above realistic background,this paper takes the dividend distribution policy of private enterprises in China as the main body of research.The following studies are carried out on the basis of existing literature and model construction:First,the article expounds the concept of ultimate controller cash flow right,and then analyzes the current research status of ultimate controller as an explanatory variable for corporate performance,investment and dividend policy.The article defines the concept of management power.The 4 indicators that measure managerial power are aggregated into organizational power and ownership power,and the related academic research on managerial power is discussed.Straighten out the existing research on operational capability and Profitability,The current research results on dividend policy are summarized.Secondly,the research model is constructed in this paper based on the existing research results,to explore the relationship between the cash flow rights to dividend policy influence mechanism,management power and ownership power affect the dividend policy and the interaction,the management of power and the differentiation of enterprise growth as moderating variables,explore the specific regulation mechanism of organizational power and ownership of power in the ultimate controller cash flow the right of action and the dividend policy process respectively.In this paper,we make an empirical analysis of 2451 sets of data from 4 consecutive years,the results show that:The cash flow right of the ultimate controller of private listed companies has a positive impact on the dividend distribution;The organizational power of managers has a negative impact on the dividend distribution;the ownership of the enterprise has a positive impact on the dividend distribution;the ownership of the enterprise and the cash flow rights of ultimate controller have interaction in the impact of dividend distribution,the specific performance is:the higher the ownership of the enterprise,the positive impact between ultimate controller's cash flow rights and the dividend distribution is stronger.Operation ability and profitability have positive effect on dividend distribution policy,and the profitability and ultimate controller cash flow right has an interact affects on dividend distribution.With the enhancement of profitability,the positive effect of the ultimate controller's cash flow on the dividend distribution is weakened.Based on the results of empirical analysis,the specific role among the ultimate controlling shareholders and manager and the differentiation of enterprise growth in the process of dividend policy formulation is verified.Finally,the article puts forward policy recommendations for optimizing corporate governance from the aspects of optimizing the ownership structure of listed companies,establishing a sound professional manager market,appropriately increasing managerial shareholding and strengthening the balance mechanism of ultimate controllers.