Will Institutional Shareholders Influence the Cash Dividends of Companies

Cash dividend is an important indicator to reflect the operating conditions of a listed company, and it can also directly show the cash dividend income that investors can obtain by holding the stocks of a listed company. It is also an important indicator that investors can refer to when making investment decisions. By studying the sample of GEM listed companies, this paper finds that the institutional shareholders have a significant positive influence on the cash dividend of listed companies. This is a good for improve the whole benefit of the medium and small investors. However, for financial companies, they do not like the cash dividend. This may be because that most of financial companies are short-term institutional shareholders, they prefer the higher stock price than the cash dividend.