Analysis On The Influence Of Semi-mandatory Dividend Policy On The Value Of Listed Companies

The dividend policy of listed companies will not only affect the rights and interests of shareholders and creditors,but also affect the value of listed companies and their future development.But for a long time,many listed companies in China have not paid enough attention to the dividend policy.They pay little dividends to their investments.Many of them refuse to pay dividends for various reasons.Moreover,they use the way of transferring shares to adjust the financial direction of enterprises,but this way is not the real meaning of dividends.In order to protect the legitimate rights and interests of small and medium-sized investors and regulate the dividend payment of listed companies,China Securities Regulatory Commission(CSRC)has issued a number of policies since 2001,which link the equity refinancing of listed companies with their cash dividend payment behavior.This policy is called semi-mandatory dividend distribution policy.The clearest document is the Decision on Revising Several Provisions on Cash Dividend of Listed Companies issued by China Securities Regulatory Commission in 2008(hereinafter abbreviated as "Decision"),which explicitly requires that the company’s accumulated profits allocated in cash in the past three years should not be less than 30% of the average annual distributable profits realized in the past three years before issuing new shares.We all know that the introduction of semi-mandatory dividend policy will certainly affect the formulation of dividend-sharing plans of listed companies,so the value of listed companies will be affected to a certain extent.Therefore,on the basis of the existing research of domestic scholars,this paper makes a supplementary study on the impact of semi-mandatory dividend policy on the value of listed companies.In order to study this content,this paper chooses to carry out in-depth analysis from the specific impact path.First of all,considering that cash is a very important resource of a company,the level of cash holdings within the company will directly affect the company’s decision-making.The allocation of resources within the company and the control of internal risks will be affected by the level of cash holdings.It can be said that the level of cash holdings within the company determines the company’s future earnings and the value of the company.Secondly,considering that cash holding value is an important part of corporate value,the improvement of cash holding value can greatly promote the improvement of corporate value.Therefore,this paper chooses to analyze the content from the perspective of cash holding value.Finally,this paperjoins in the further study of investment efficiency,mainly considering that investment plays an important role in the company’s business development.Investment efficiency will affect the value of the company to varying degrees,and then affect the development and progress of the company.This paper chooses the data of Shanghai and Shenzhen A-share non-financial listed companies from 2000 to 2017,takes the Decision issued by China Securities Regulatory Commission in 2008 as the research background,and analyses the impact of semi-mandatory dividend-sharing policy on the value of listed companies from the perspective of cash holding value.Finally,the paper further analyses the investment efficiency.The results show that:(1)The cash holding level of listed companies and the value of cash holding of listed companies have increased after the promulgation of the semi-mandatory dividend policy.(2)Cash holding aggravates the company’s over-investment and restrains the company’s under-investment.(3)Semi-mandatory dividend policy weakens the aggravating effect of cash holdings on over-investment and restrains over-investment.Semi-mandatory dividend policy aggravates the restraining effect of cash holdings on under-investment and has a certain mitigating effect on under-investment of companies.This paper supplements the research on semi-compulsory dividend policy,corporate value and other related fields,which is conducive to the formulation of a more suitable semi-compulsory dividend policy in China.