Study On The Impact Of Margin Trading Towards Enterprise Dividend Policy

China's margin trading officially landed on March 31,2010,and is in the stage of step-by-step expansion currently.The implementation of margin trading has a far-reaching impact on the development of China's securities market,the investment model of investors and the business operation of securities companies.Now China's margin trading is in the stage of step-by-step expansion.As of December 31,2019,after six expansions,the scope of margin trading has expanded to 1600 stocks,and the balance of margin trading has risen to 1019 billion.The impact of margin trading towards enterprise dividend policy,not only related to Changes in the decision-making mechanism of dividend policy,but also related to the game between listed companies and investors,which is a very valuable topicThis paper constructs four dividend policy indicators:cash dividend payment tendency,cash dividend payment intensity,stock dividend payment tendency and stock dividend payment intensity.Taking 3450 A-share listed companies from 2007 to 2018 as the research object,based on the theory of Tax Difference,Signal Transmission and Principal-Agent,this paper studies the impact of margin trading towards enterprise dividend policy by means of PSM-DID and other methods,then uses a variety of methods for robustness test.In order to have a more clear understanding of the comprehensive impact,this paper expands the model from the following perspectives;(1)From the perspective of step-by-step expansion,this paper divides the research samples into sub-samples according to the expansion batches,then makes an empirical test on each sub-sample based on PSM-DID model to compare the differences of dividend impact results among different batches and study whether the impact is stable.(2)From the perspective of heterogeneity,this paper classifies the research samples according to the nature of property rights,executive pay and other characteristic indicators.Based on the PSM-DID model,it conducts an empirical test on the sub-samples after classification,and explores the difference of the impact of margin trading under the heterogeneous governance environment.(3)Discussing the impact of financing and short-selling on dividend policy respectively.Add the margin statistics and short selling statistics to the PSM-DID model to explore the difference of the impactThe main conclusions are as follows:(1)On the whole,the implementation of margin trading significantly reduces the cash dividend payment tendency,stock dividend payment tendency and payment intensity,but makes the cash dividend payment intensity increased slightly.The influencing mechanism is that margin trading improves the information transparency of listed companies,reduces the functions of dividend policy signaling,agency cost constraints and so on,so listed companies reduce the dividend payment tendency and intensity.But at the same time,the implementation of margin trading plays a positive role in reducing management overconfidence,improving investment decisions and reducing earnings management,so that the company can generate more cash for cash dividends,thus improving the intensity of cash dividends payment.(2)From the perspective of time dimension,the impact of margin trading on dividend policy gradually weakened and reached stability On the one hand,the earliest companies to join margin trading are more high-quality,and the positive role of margin trading is more significant.On the other hand,it also reflects the process of the introduction of financial policy in China's securities market from violent reaction to gradual adaptation.(3)From the perspective of individual differences,the more market-oriented external governance environment and the more stringent internal governance environment of listed companies,the impact on dividend policy will be more significant.(4)From the perspective of financing and short-selling,short-selling will significantly reduce the tendency of cash dividend payment and increase the intensity of cash dividend payment,while financing transactions will be on the contrary,and financing transactions will significantly reduce the tendency and intensity of capital to equity.Therefore,with the continuous growth of the scale of short-selling in the future,it is possible to further reduce the cash dividend payment tendency and stock dividend payment tendency,stock dividend payment intensity,and improve the cash dividend payment intensity.Combined with the specific situation of margin trading in China,this paper puts forward some policy recommendations to improve the dividend policy of listed companies,including continuing to promote the implementation of margin trading,screening the target companies from the perspective of governance environment,and actively guiding the companies to establish long-term dividend distribution mechanism.