Research On The Influence Of High Speed Rail On Cash Dividend Policy

Opening of China's high-speed rail is taken as the research background.The impact of high-speed rail opening events on corporate cash dividend policy is analyzed in this paper.The methods are different in different method and dynamic analysis.The research objects are A-share listed companies from 2007 to 2013.By the study,we found that the cash dividend distribution of enterprises would be improved significantly after the opening of high-speed rail.The result of dynamic analysis shows that high-speed rail result to the increase of dividend significantly in the two or three years after the opening of high-speed rail.This suggest that the impact of high-speed rail opening on cash dividend will be delayed for some time.Furthermore,some important variables were studied.By the study we found that the cash dividend rate of enterprises far from the central city is significantly improved after the opening of the high speed rail,while the cash dividends of the enterprises closer to the central city do not change.The cash dividend rate of enterprises in the developed areas is significantly improved after the opening of the high speed rail,the cash dividend rate of the other enterprises do not change.The cash dividend rate of enterprises in areas without airline is significantly improved after the opening of the high speed rail,the cash dividend rate of the other enterprises do not change.By the regression of the heterogeneity of the enterprise,we found that after the opening of the high-speed rail,the small-scale enterprises,the state-owned enterprises,the enterprises which are listed for shorter time,the enterprises whose chairman and general manager is the not the same person,the enterprises with large shareholders and the enterprises with higher concentration will increase the proportion of cash dividend significantly,the cash dividend rate of the other enterprises do not change.Further research shows that the mitigating financing constraints and the enhancing financial information transparency are the main paths of this influence.Opening of high speed rail will weaken the financing constraints of enterprises.Therefore,companies can get more financing opportunities.In addition,after the opening of high speed rail enterprises are more concerned by the analysts,the number of analysts' visit has increased significantly.The transparency of financial information of enterprises has also increased significantly.The conclusion of this paper prove that opening of high speed rail has a significant impact on corporate cash dividend policy.Improving the transportation system would change the information environment of enterprises.It has a great significance for the enterprises to make the right financial decisions with the effect of the change of the environment.