Reduction of large shareholders scale, propensity to pay cash dividends and firm performance ??? An empirical research based on listed companies of GEM

Our main market has the low proportion of dividend distribution companies; the level of dividend payment is not high. But most GEM-listed companies show "abnormal" strong willingness to share dividends shortly after the listing, the level of dividend payment is high. There are obvious differences of dividend distribution between the two markets. Meanwhile, the massive lifting a ban of restricted shares of GEM-listed companies\´ large shareholders came to our sight gradually. So we will study in the perspective of the propensity to pay cash dividends of GEM-listed companies, we use 297 GEM-listed companies\´ 1936 reduction events as samples between January 1, 2010 and December 31, 2013, and we empirically analyzes relationship between the reduction of large shareholders scale and the propensity to pay cash dividends of GEM-listed company. We join the affect of company performance to this paper, and discuss the dependence of large shareholders reduction and propensity to pay cash dividends to company\´s performance. We find that there is a negative correlation relationship between the reduction of large shareholders scale and propensity to pay cash dividends of GEM listed companies. But their relationships are enlarged by company\´s performance, large shareholders will consider the impacts of the propensity to pay cash dividends from the changes of company\´s performance, thus they will treat reduction behavior more rationally.