Abstract: The characteristics of corporate debt financing are important factors affecting cash dividends. This paper examined the effect of debt distribution in group and subsidiaries′ debt maturity structure on cash dividends of listed company. The study found that the increase of debt distributed in subsidiaries will reduce the possibility and level of cash dividends that the listed company could pay, and in state-owned enterprises, the negative impact of debt distribution in subsidiaries on listed company′s cash dividends is weaker than that of private-owned enterprises; in addition, for the groups in which the debt is mainly distributed in subsidiaries, the higher the proportion of subsidiaries′ short-term liabilities is, the less cash dividends the listed company could pay. Therefore, strengthening debt management within the group from the perspective of the liabilities of subsidiaries is an important factor to ensure the ability of cash dividends of listed company.

Key words: debt distribution, ownership nature, debt maturity structure of subsidiaries, cash dividends