Major Shareholders Commitment,Cash Compensation and Small & Medium Investor Protection in Asset Recombination:A Case Study

This paper studies the relationship between compensation commitment of the major shareholders and dividend payout based on the case of Hareonsolar's material assets reorganization,from the view of investor protection theory and dividend agent theory. The study indicates that the real intention of Hareonsolar's high dividend payout is delivery of cash to large shareholders,and the behavior of high dividend distribution induces the suspicion of expropriating small shareholders' interest. CSRC should focus on the compensation commitment institution to strengthen protection effect on minority shareholders' interest,and forbid major shareholders to compensate for the listed company by cash dividends.