On the relationship between fund holdings and cash dividend policy of listed companies

摘要

Dividend policy is one of the key financial policies of a listed company which plays an important role in the company's management decisions. China's dividend policy reform provides us with a great opportunity to shed some light on the dividend policy of listed companies using data of A-share listed companies listed in Shenzhen and Shanghai Stock Exchanges in the period 2007–2012. We analyze the status of listed companies' cash dividend policy in China, and empirically analyze whether fund-holdings or a proportion of the fund-holdings affects cash dividend policy. Results show that, relatively there is no fund-holdings in listed companies, and when there is a company engaged in it, tends to pay cash dividends instead. A proportion of fund-holdings is positively correlated to the level of cash dividends paid, that is, the higher proportion of cash dividends is, the higher the level of cash dividends paid by the listed companies.