Research On The Equity Capital Cost Of The Company Between Additional And No Additional Issuance Of New Shares Under The Dividend Tax Reform

At the end of 2015,the central economic work conference put forward the five tasks of economic development in 2016: "three to one drop and one supplement".The "one drop" of mission objectives refers to the reduction of social security costs and transaction costs,taxes,production,financing and so on,making the production and business process of a company moving forward lightly,which is the cornerstone of efficiency.At present,there are many studies on the role of corporate income tax and personal income tax on the cost of equity capital.Few people join the financing policy of new issue of new shares to investigate the cost of equity capital.This paper analyzes research fruits of foreign literature on dividend tax equity capital cost effect,combined with the characteristics of Chinese personal income tax,respectively,by the Commission in addition to finance all listed companies from 2002—2007 and 2009—2014 of the cost of equity capital(OJ,PEG and Gordon calculated by three methods),income tax tax,issuance of new shares and other empirical data,using approximate double difference model,an empirical study on the 2005 dividend tax cuts and 2012 differentiated dividend tax respectively after the implementation of the issuance of new shares and the company between SEO company equity capital cost change.The specific conclusions are as follows:(1)the 2005 dividend tax cuts before and after the implementation of company,the cost of equity capital and the tax burden is the negative correlation between the dividend tax,increase the cost of equity capital;2012 differentiated dividend tax policy after the implementation of equity capital into the company and the tax burden is positive correlation.(2)Combined with our tax burden,we build earnings multiplier.We find that the factors that affect stock prices will have an opposite effect on the cost of equity capital,even if the stock price increases,the cost of equity capital will be reduced.On the 2002 —2007 issuance of all shares of listed companies to see,the proportion of private placement of additional shares of 62% listed companies,the overall negative earnings management,namely the issuance of new shares,the company’s stock price will drop,reaction to the rise in the cost of equity capital for the issuance of new shares after the company cost of equity capital.Therefore,after the implementation of dividend tax reduction policy in 2005,the cost of equity capital of IPO companies increased more than that of non IPO companies.(3)2009—2014 the issuance of all listed companies shares,company holding time increased,reduce the dividend tax,according to earnings multiplier and the chain rule found the company’s stock price rise,and the issuance of new shares of the company’s stock price has a greater increase,reaction to the cost of equity capital that all listed companies equity capital the decline in the cost of issuing new shares,and the company compared with the issuance of new shares,the issuance of new shares,the cost of equity capital fell even more sharply.The full text offers suggestions from two perspectives of the company and the government.Companies to fully understand the dividend tax provisions,different financing ways of the company directly affects how the cost of equity capital as the foundation,to control the cost of equity capital of the company through the proper arrangement of the scale and structure of company financing,realize the goal of enterprise.The government should give full consideration to the change of the cost of equity capital,supplement and improve the personal income tax law system,adjust the relationship between the micro economic entities,promote the sustainable and high-quality growth of the economy,and make the capital market develop in a long-term and healthy way.