Research On The Impact Of Listed Company's Stock Price Collapse Risk On Cash Dividend Policy

As a frequent financial phenomenon,stock market crash risks will destroy investor confidence,cause huge shocks in the stock market,endanger the normal development of the real economy,and cause waste of resources and mismatches.In the face of falling stock prices in the stock market,risk managers will not sit idly by and will look for opportunities to mitigate risk shocks as much as possible.As an important asset of the company,cash can effectively prevent the future uncertainty of the company,and management will reduce the payment of cash dividends in response to stock price crashes.In the field of corporate finance research,the stock price crash risks and cash dividends have always been hot issues.Correctly understanding the path of impact of stock price crash risks on cash dividends,whether it is to enhance the value of listed companies,deal with stock market risks,and build a good stock market operation has important practical significance.This article selects the 2006--2018 A-share listed companies as samples,build the relationship between stock price crash risk and cash dividend model,discusses the impact of stock price crash risk on cash dividend,to join the financial flexibility to study the difference between stock price crash risk and cash dividend degree under different financing constraints,and calculate the excess cumulative return under different time window to study the market reaction of cash dividend under the stock price risk.Finally,the institutional background is considered and samples are grouped according to refinancing needs and property rights.This paper draws the following conclusions through analysis :(1)When the stock price crash risk of listed companies is high,the payment of cash dividends will be reduced,and listed companies have an incentive to use cash dividends to alleviate the continuous decline of stock prices.(2)In enterprises with higher financial flexibility value,enterprises with stock price crash risk tend to increase the payment level and willingness of cash dividends.(3)The market reaction of paying cash dividend when the company's stock price is at high risk of crash is greater than that of paying cash dividend when the company's stock price is at low risk of crash.(4)The negative effect of stock price crash risk on cash dividends only exists in the samples without financing needs.Listed companies with financing needs will pay cash dividends and increase the payment level due to the semi-compulsory dividend policy.(5)According to the nature of property rights,it is found that the difference in the results of the payment level test is small,and whether the payment value exists only among non-state-owned shareholders indicates that the risk of stock price collapse will change the willingness of non-state-owned enterprises to pay cash dividends.(6)the negative effect of stock price crash risk on cash dividend only exists in the sample with management holding shares.The risk of stock price decline will lead to the decline of equity value held by the management,and the management is more willing to hold cash and wait for options.