Corruption, process of marketization and cash dividend policies

Abstract

Taking the A-share listed companies in Shanghai and Shenzhen stock exchanges as samples, this paper empirically examines the relationship between regional corruption and cash dividend policy based on logit model. Logit model is a probabilistic model. When the explained variable is binary choice variable, namely 0–1 variable, logit model is adopted. Our findings show that regional corruption has a significant inhibitory effect on cash dividend distribution. Further research finds that official corruption has a more obvious influence on cash dividend distribution of non-state-owned firms. The development of the process of marketization can mitigate the impact of regional corruption on cash dividend distribution. This paper expands the influence of regional corruption on the micro business decision, and also provides practical significance for perfecting the cash dividend policy of companies and protecting the interests of small and medium investors.