Impact Research On The Influence Of Political Connection On The Enterprise Cash Dividend Policy From The Perspective Of External Governance

Cash dividend is an important way not only for listed companies to repay investors,but also for investors to obtain a reasonable compensation.The weak foundation and slow development of the Chinese capital market resulted in the cash dividend of the listed companies in not standardized.It will not only injure the interests of small investors but also greatly hindered the development of Chinese capital market in a good order.In order to standardize dividend distribution of listed companies,the China Securities Regulatory Commission has promulgated a series of laws and regulations,but the effect is not significant.So how to improve the listed company's cash dividend level should be the focus of the government,enterprises and academic circles.Firstly,based on the theory of resource dependence,this paper expounds the role of political connections to reduce the financing constraints.Then,based on the theories of information asymmetry,signal transmission and external pressure,the internal and external reasons for the private listed enterprise to distribute the cash dividend under the condition of objective conditions are explained.Thridly,in order to provides empirical evidence of Chinese private listed company's cash dividend level,we used multiple linear model to test the impact of the existence of political connections and corporate political connections level on the cash dividend policy of private listed enterprise model regression based on the research object which are selected on the main board of A shares between 2013 to 2015.Finally,based on the empirical research,according to the present situation of the cash dividend and the political connection of the private listed companies in China we put forward the relevant policy recommendations from four aspects: the enterprise,the government,the regulatory authorities and the supervision department.The main conclusions of this paper are shown as below:(1)The political connection of private enterprises is positively related to the amount of cash dividend and the tendency of enterprise cash dividend payment.(2)The political connection level of private enterprises is positively related to the amount of cash dividends and the cash dividend payout.(3)Compared with the enterprises in the low competitive industries,the political connections of the enterprises and the level of political connections in the highly competitive industry is more related to the tendency of the cash dividend and the number of issued.(4)Compared with the enterprises with a high degree of marketization,the relationship between political connections or the level of political connections and corporate cash dividend tendency and the number of issued in the market is low.