Research On The Influence Of Economic Policy Uncertainty On Cash Dividend Policy Of Chinese Listed Companies

Recent years have witnessed the topic of how economic policy uncertainty affects corporate financial decisions rushes into the forefront of the academic circles,yet there are few literatures on the influence of economic policy uncertainty on cash dividend policies of China's listed companies.This paper studies the cash dividend policy of China's listed companies from the perspective of economic policy uncertainty and investigates the influence of economic policy uncertainty on the cash dividend payment of China's listed companies,as part of its efforts to expand the research on the uncertainty of economic policy and the investment decision of listed companies,and to enrich the research on the influencing factors of corporate cash dividend policy.To study how economic policy uncertainty impacts the cash dividend policy of listed companies in our country,and further analyze differences of such effects for listed companies through the agency theory,we need to take stock of relevant literatures on the uncertainty of economic policy and relevant corporate governance to analyze how Chinese economic policy uncertainty affects the cash dividend policy of listed companies,by means of the Contingency Theory,Signaling Theory,Catering Theory and Agency Theory.Then we continue to bunk claims,followed by the endeavor that considers pay cash dividend behavior as dependent variable,and economic policy uncertainty as independent variable.Finally,empirical research is conducted on the relevant data of a-share listed enterprises from 2003 to 2016.It is indicated that :(1)the greater the uncertainty,the higher the level of cash dividend payment and the stronger the willingness to pay;(2)in the first and second category of companies with serious agency problems,the economic policy uncertainty is more significantly related to the level of cash dividend payment and the willingness to pay.To avoid endogenous problems,the uncertainty index of economic policy in the United States,Europe,Russia and Japan is used as an instrumental variable for robustness test.In order to reduce the influence of semi-compulsory dividend policy on the results,the observation samples of listed companies that conducted refinancing after 2008 were deleted and the regression analysis was conducted again.In order to explore the relationship between external governance role played by economic policy uncertainty and other internal and external governance roles of the company and whether they are superposition or substitution,two major corporate governance mechanisms such as the degree of equity concentration and the audit of top ten accounting firms in China are further studied.It can be found that ownership concentration reflecting the internal governance mechanism has a bearing on economic policy uncertainty and the relationship between the different cash dividend policies.In a scattered business,the interaction coefficient between the economic policy uncertainty and the type I agency problem is more significant,in the company of equity concentration,the interaction coefficient between the economic policy uncertainty and the type II agency problem is more significant;Firm auditing,which reflects the external governance constraints of a company,also affects the relationship between economic policy uncertainty and the company's cash dividend policy.Among the companies audited by ten non-domestic accounting firms,the interaction coefficient between economic policy uncertainty and agency cost is more significant.Such being the case,corresponding policy are put forward from two aspects for the policy makers and enterprise managers.