The Pledge Ratio Of The Controlling Shareholder's Equity And Cash Dividends

With the dramatic falls of the domestic stock market,the equity pledge and the transfer of control have become the focus of market attention.In order to prevent the pledged shares from being closed down or even controlled,the controlling shareholders often have a strong demand for market value management.Will they meet this demand by influencing the dividend decisions of listed companies? Some scholars have found that it is easier for a listed company to choose a "high transfer" profit distribution scheme to avoid or reduce the level of cash dividend payment.Other scholars have found that listed companies that pledge the shares of controlling shareholders will pay significantly higher cash dividends.At present,there is still a great deal of controversy in the academic community.Therefore,based on the perspective of controlling right transfer risk,this paper will study the relationship between the ratio of controlling shareholder's equity pledge and the cash dividend of listed companies.Considering the impact of equity split reform on cash dividends,this paper takes the whole A-share listed company in China from 2007 to 2017 as an initial research sample,and empirically examines the impact of controlling shareholder's equity pledge ratio on the cash dividend of listed companies.On this basis,in order to further investigate whether the percentage of equity pledge of controlling shareholders has different effects on cash dividends when the pledge rate of controlling shareholders is at different levels,In this paper,the sample of the company with shareholder equity pledge is divided into high pledge rate group and low pledge rate group.At the same time,in order to further analyze the difference in the ownership of listed companies,whether there is any difference in the impact of controlling shareholder's equity pledge ratio on cash dividends,we divide all the samples into state-owned enterprises and non-state-owned enterprises according to the property rights.This paper will study the relationship between the ratio of controlling shareholder's equity pledge and the cash dividend of listed companies based on the perspective of controlling right transfer risk.Through the empirical analysis,the main conclusions of this paper are as follows : 1?The ratio of equity pledge of the controlling shareholder of the listed company is negatively related to the cash dividend,but the negative correlation exists only when the equity pledge ratio of the controlling shareholder is at a relatively high level.2?The negative correlation between the equity pledge ratio of controlling shareholders and cash dividends exists only in non-state-owned enterprises,but the relationship is not significant in state-owned enterprises.The innovation of this paper is mainly embodied in two aspects:(1)Innovation of research perspective.The current scholars mainly focus on whether there is a correlation between the two and what kind of correlation there is.At present,there are no scholars to explore whether the percentage of shareholder's equity pledge has different effects on cash dividends when the pledge rate of controlling shareholder is at different levels.(2)Innovation of model variables.When studying this problem,the current scholars use the total assets of the company to measure the size of the company,and use free cash flow to measure the company's cash flow.This paper uses the company's equity and the company's net operating cash flow to measure.