The Research on Interest Expropriation of the Cash Dividends Policy in China's Listed Companies

Abstract

Abstract-- High payment of cash dividends is one of the ways majority shareholders to expropriate minority shareholders' interests. The higher majority shareholders hold shares, the greater the cash dividends are paid , the more serious the excoriation will be. The use of equity financing to pay cash dividends is a more serious act of interest expropriation which directly leads to expropriation of the capital of minority shareholders. When they have common interests, it may lead to "collusion" effect. A conflict of interest may leads them to supervise each other. But the supervisory role is not obvious because of higher concentration of shareholder's right.