An Empirical Study on the Effects of the Non-Tradable Share Reform to the Cash Dividends Policy of Listed Companies in China: Based on Data Mining Technology

Based on data mining technology, this article compared the cash dividends distribution desire of listed companies in China during 2003-2007 to examine how the non-tradable share reform affects the dividends distribution behavior of controlling shareholders. The empirical study result indicates that cash dividends distribution desire of the listed companies has a positive correlation with the share-holding proportion of the first major shareholder before the reform, supports the "cash dividends expropriation" hypothesis; After the reform, this positive correlation has weakened significantly. So we can draw a conclusion that "the tunnel effect" of cash dividends has weakened after the non-tradable share reform.