Abstract: Ultimate controlling shareholder of a listed company has an important influence on cash dividend. This paper selects private listed companies of Shanghai Stock Exchange and Shenzhen Stock Exchange from 2004 to 2006 as samples, and presents an empirical study on the relationship between ultimate controlling shareholder and cash dividend. The result shows that ultimate controlling shareholder acquiring control right through IPO has a significantly positive relation to cash dividend, control right and cash flow right has a significantly positive relation to cash dividend, and divergence between control right and cash flow right and pyramid control mode has a significantly negative relation to cash dividend. For ultimate controlling shareholders acquiring control right through IPO, control right and cash flow right have a more significant influence on cash dividend, and cash dividend is more when there is divergence between control right and cash flow right and when applying pyramid control mode if compared with other ultimate controlling shareholders.

Key words: ultimate controlling shareholder, control right, cash flow right, cash dividend