Study On The Effect Of Semi-mandatory Divide Policy On Cash Divide And Refinancing Behavior Of Listed Companies

Since the establishment of China's capital market,Listed companies are keen to refinance and despise dividends,especially cash dividends,which makes the interests of small and medium-sized investors unprotected.To this end,the CSRC has successively issued a series of dividend control policies to guide listed companies to actively distribute dividends.The "Decision on Amending Certain Provisions on Cash Dividends of Listed Companies" promulgated in 2008 links refinancing qualifications with cash dividends.Then,this policy will inevitably have an impact on the cash dividend behavior and refinancing behavior of listed companies.This paper conducts an empirical study on this.Based on the "Decision on Amending Certain Provisions on Cash Dividends of Listed Companies" issued in 2008,this paper examines the impact of the semi-mandatory dividend policy on the cash dividends behavior and refinancing behavior of listed companies by using the data of China's A-share market from 2001 to 2016.First,using the Differences-in-Differences method(DID),the listed company with refinancing needs is used as the experimental group,and the listed company without refinancing demand is used as the control group.By comparing the difference in cash dividends behavior between the two groups,objectively embodying the effect of the semi-mandatory dividend policy on the cash dividends behavior of listed companies with refinancing needs.Secondly,through the T test,Comparing the ratio of refinancing,dividend and refinancing(referred to as the "dividend financing ratio")before and after the semi-mandatory dividend policy to test the semi-mandatory dividend policy for the refinancing behavior of listed companies Impact.Finally,the model examines the difference between the cash dividends of listed companies before and after refinancing and the impact of the semi-mandatory dividend policy.The empirical results show that:(1)After the introduction of the semi-mandatory dividend policy,compared with listed companies that do not have refinancing needs,the cash dividends of listed companies with refinancing needs will be stronger,and the cash dividends will be stronger.(2)Before and after the semi-mandatory dividend policy was introduced,there was a difference between the equity refinancing amount and the dividend financing ratio of listed companies.Among them,after the introduction of the policy,the financing amount of the listed company is significantly higher than the amount of financing before the introduction of the policy.The dividend-paying ratio after the introduction of the policy is lower than before the policy was introduced.(3)For cash dividends intention,the difference between listed companies before and after refinancing is not significant,and the impact of semi-mandatory dividend policy is also not significant;for the cash dividend level,there is no significant difference between the listed company's cash dividend payout ratio before and after refinancing.In addition,the semi-mandatory dividend policy will not have a significant impact on the difference between cash dividend payout before and after refinancing.Based on the results of empirical analysis,this paper believes that the government should further standardize the cash dividends behavior and refinancing behavior of listed companies in China,such as refining the contents of the refinancing system and dividend policy,setting the upper limit of refinancing,and standardizing the cash dividend behavior after refinancing.etc.