Major Shareholder Equity Pledge, Dividend Stability And Company Value

With the development of capital market in China,value management has attracted the attention of listed companies.Improving corporate value is the common goal pursued by both managers and shareholders.Therefore,it is particularly important to study the factors affecting corporate value.In recent years,equity pledge is a kind of financing behavior that listed companies are more enthusiastic about.This kind of effective financial instrument in mature capital market will affect the company value of listed companies when it is used in the specific capital market of our country.Moreover,dividend policy,as one of the three major financial policies of the company,is also a topic of concern.Since Lintner(1956)put forward the dividend smoothing,dividend smoothing has become one of the classic issues in the field of dividend policy,which will also affect the value of the company.In addition,under certain conditions,the majority shareholders who pledge shares will manage the value through the stability of dividends.In view of this,based on the relevant data of Shanghai and Shenzhen A-share listed companies from 2010 to 2016,this paper first studies the relationship between pledge of shareholding rights of controlling shareholder and corporate value,dividend smoothing and corporate value,and then studies the mediating role of dividend smoothing in the relationship between controlling shareholder's equity pledge and corporate value.The main conclusions of this paper are as follows: Equity pledge is effective in China's Shanghai and Shenzhen motherboard as a whole.The behavior of controlling shareholder of listed companies on the motherboard tends to be rational,and there is a significant positive correlation between the behavior of pledge of shareholding rights of controlling shareholder and the value of the company;Under the supervision of the CSRC and the stock exchange and the correct guidance of the market,the dividend distribution of Listed Companies in China tends to be stable.There is a significant positive correlation between dividend smoothing and company value;Dividend smoothing plays an intermediary role in the relationship between equity pledge of major shareholders and corporate value.The major shareholders who pledge equity have more motivation to improve corporate value through dividend stability.Further research finds that the intermediary role of dividend smoothing in the relationship between large equity pledge and corporate value is more significant in non-state-owned companies.This study enriches the study of the economic consequences of the major shareholders' behavior on listed companies,as well as the specific mechanism and ways of the economic consequences of the major shareholders' own behavior.