Study On The Impact Of Short-selling Mechanism On Corporate Cash Dividend Policy

This paper uses signal theory and principal-agent theory to study the relationship between short selling mechanism and corporate cash dividend policy.From the theoretical point of view,this paper explains two paths of short selling mechanism's influence on cash dividend policy,and explores whether short selling mechanism can increase cash dividend payment or reduce cash dividend payment.Empirically,this paper takes China's margin trading policy as a quasi-natural experiment to study the impact of short-selling mechanism on corporate cash dividend policy.A sample of Chinese A-share listed companies is selected.Short-selling indicators,cash dividend policy and other financial data of listed companies from 2007.12.31 to 2016.12.31 are intercepted,and difference-in-difference model is used to study the effect of short-selling mechanism on cash dividend policy.The impact of dividend policy.The results show that: after fitting the double difference model,the cash dividend payment tendency and intensity of short-selling companies have increased significantly after entering the margin trading list,while the cash dividend payment tendency and intensity of non-short-selling companies have not changed significantly before and after the promulgation of the policy.Then,the robustness of the main model results is analyzed.Firstly,the setting of dependent variables was changed,and it was found that the regression results of the model did not change after dependent variables were incorporated into the industry information.In addition,this paper also tested the causality of the model by PSM preference matching test,combined with placebo test.The test results show that the relationship between short selling mechanism and cash dividend policy is still the same and significantly stable.Furthermore,this paper also studies the moderating effect of corporate environmental factors on the results of this study.This paper examines the moderating effect of corporate environmental factors on the relationship between short selling mechanism and cash dividend from two aspects: the level of executive power and the level of earnings management in financial reporting.The results show that short-selling mechanism has a more significant impact on cash dividend in companies with low-level executive apower and positive earnings management,which provesthat corporate governance environment has a moderating effect on the relationship between short-selling mechanism and corporate cash dividend policy.