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

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.