A Study On The Impact Of Financial Slack Of Listed Companies To Cash Dividend And Equity Refinancing Behavior

Dividend policy of listed companies in our country presents many visions,one of the outstanding problem is the low dividend payout rate,in other words,the phenomenon of low dividend is still widespread.According to current situation of dividends distribution of domestic enterprises,the CSRC has continuously improved the relevant documents to regulate the dividend policy of listed companies.Among them,after the semi-compulsory dividend policy is implemented,the dividend distribution of listed companies in our country has obviously improved,and the number of companies paying cash dividend and the rate of cash dividend payment have increased.In spite of this,studies have shown that there is a regulatory paradox in the policy: it forces those who have the financing needs but should not share out bonus to pay dividends for the refinancing qualification,but it is difficult to really constrain companies that are supposed to share out bonus but have no intention to refinance.And financial slack is the main source of low risk fund demand for enterprise,is the direct embodiment of corporate financial flexibility.Based on this,this paper tries to explore the characteristics of dividend distribution and equity refinancing decision-making of listed companies in our country from the perspective of financial slack and in the background of semi-compulsory dividend policy.This paper chooses 2007-2015 A-share listed companies in Shanghai and Shenzhen as a research sample,on the one hand,to discuss financial slack level of companies with different financial slack how to effect on cash dividend distribution,on the other hand,due to the special financing environment in our country,further discusses the impact of financial slack on equity refinancing decisions,and examines the current situation of equity refinancing preferences in China.It is found that there are significant differences in the cash dividend level of listed companies with different financial slack levels,and there is no significant positive correlation between the financial slack and the cash dividend level of the listed companies with sufficient financial slack,but for the listed companies with insufficient financial slack,its financial slack and cash dividend level showed a significant positive correlation;the reason behind it is that,relative to sufficient financial slack of listed companies,insufficient financial slack of listed companies are more inclined to equity refinancing.The conclusion of this paper enlightens us: we can comprehensive consider the difference of financial slack level of listed companies,implement the differentiated cash dividend supervision standards,for the purpose of changing the "one size fits all" cash dividend regulatory policy;expand the financing channels,and strengthen the supervision of equity refinancing;listed companies should be based on their own financial slack level to carry out reasonable cash dividend policy,it is better that high financial slack pay out high cash dividends,low financial slack pay out low cash dividends,to promote the healthy development of cash dividend distribution of listed companies in our country.