The effect of power balance with shareholder structure on the level of cash dividend distribution: A Theoretical and Empirical Study

摘要

The unbalanced ownership structure is one of the most important factors which cause the booming of paying out cash dividend in listed companies of China. First, Descriptive statistics about the existing condition of the power balance with shareholder structure has been made in this paper. Chinese listed companies which paid out cash dividend in 2006 are chosen as samples. The mean and median of these companies with different ownership structure are compared with independent samples T-text and Mann-Whitney U-text. The result is that the level of cash dividend distribution of the balance companies is lower than the other ones significantly. It illustrates that the existence of power balance with shareholder structure can restrict controlling shareholders to enlist self-interest and optimize corporate governance. Finally, considering about the existing condition we make some suggestions about policy.