| Since May 2002,System of Government Property using the means that are budding,auction and listing,the real estate market of China has been rapidly developing,until the second half of 2011,for the "most severe" control measures of real estate price,the price of real estate began loosening.As an important collateral assets of corporate,positive shocks of house price can increase the collateral value of corporates' real estate,corporates can continue to preserve financial flexibility,preventing and utilizing the uncertainty of environment.But too high financial flexibility will increase corporates' controllable funds,resulting in high agency cost.Cash dividend distribution can effectively alleviate or solve the problem of agency,reduce agency costs,but also obtain refinancing qualifications,establish a good reputation,and so on.In the face external macroeconomic shocks of rising housing prices,corporate should weigh continuing to preserve financial flexibility against eliminating agency costs by paying dividend.Therefore,this paper discusses how to make dividend policy when the value of real estate rises based on the perspective of financial flexibility theory.In this paper,we choose China's A-share listed companies over the period 2003-2014 as a sample to make the empirical analysis,combined with China's housing price fluctuations,the sample period 2003-2014 is divided into two periods,2003-2010 for the growth period,2011-2014 for the stable period.We study how the real estate value impact on the company's dividend policy and the difference of company's dividend policy between two period.The results show that:through the collateral channels,the rising of house price increases the corporates' debt financing ability,enhance the financial flexibility,the willingness to pay dividends and the cash dividend payout ratio of the corporates increase.Compared with stable period Enterprises are more willing to pay dividend and distribute more cash dividend.On this basis,in order to confirm the rationality of this study perspective,this paper further explore the companies how to distribute dividends based on the perspective of financial flexibility.After dividing the sample by financial flexibility into two groups,it is found that:the companies relies less on external macro housing price to meet the dividend payment in the group of high financial flexibility,however the corporate more depends on the increased financial flexibility of rising house prices to pay dividend in the group of low financial flexibility.The results show that the rising of house price will increase the willingness to pay dividends and the dividend payout rate.In the period when price rapidly rise Willingness to pay dividends are more intense and dividend payment rate is higher than when price slowly rise,and enterprise owning high financial flexibility more depend the rising of real estate value.Therefore,we need to make a comprehensive assessment of the influence of the adjustment policy of house price on the financing ability of the Company,and carefully evaluate the effect of the refinancing qualification policy linked to the dividend,to promote the development of enterprises and protect the interests of investors.The innovation of this paper is that most of the research on house prices in China has focused on the macroscopic level,only a few literatures have combined the external macroscopic price shock with corporate financial decision-making.Based on the financial flexibility perspective,this paper studies supplement the previous research and provide a new perspective of understanding the corporates' financial behavior.This study enriches the financial flexibility and dividend policy and other related theoretical research.It is helpful for corporates to arrange financial flexibility to rationally allocate resources when facing external shocks. |
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