A Study On The Influence Of Cash Dividend Distribution On The Cost Of Secondary Equity Offering

Cash dividend payment is a common means for listed companies to reward investors,and it is also a part of corporate financing activities and corporate governance.Adopting a reasonable cash dividend policy is of great significance for enterprises in many aspects,such as production and operation,acquisition of regulatory earnings and so on.Equity refinancing is one of the most important financing methods adopted by listed companies besides issuing bonds.It is an important channel to obtain funds in the stock market to fill the fund gap.Both of them are common financial decision-making behaviors of listed companies,and their reasonable collocation and balanced decision-making are helpful to safeguard the interests of shareholders and the sustainability of listed companies.In order to regulate the relationship between the two and promote the steady development of the capital market,the China Securities Regulatory Commission has successively issued a series of laws and regulations linking equity refinancing with cash dividends.According to the Decision on Amending the Administrative Measures for the Issuance of Securities by Listed Companies,Paying cash dividends to a certain proportion is a necessary condition for listed companies to conduct equity refinancing,and the two are closely linked.Currently,most of the existing literature studies the catering of cash dividends to refinancing behavior based on the background of semi-mandatory dividend,and few pay attention to the size of refinancing cost may also be caused by the economic consequences of dividend payment.Therefore,based on the different characteristics of cash dividends,this paper intends to study the impact of the willingness to pay cash dividends,the level of payment and the stability of cash dividends on the cost of equity refinancing,and explore the relationship between the two and the mechanism of action.Based on the above background,this paper selects the data of cash dividend distribution and refinancing of A-share listed companies from 2012 to 2021,establishes A regression model,and finds that different characteristics of cash dividends will bring different degrees of impact on equity refinancing costs.Empirical results show that:(1)Compared with companies without cash dividends,cash dividends can reduce the cost of equity refinancing;(2)The higher the cash dividend payout rate,the lower the equity refinancing cost;(3)Cash dividends can indirectly reduce the cost of equity refinancing by increasing the return on equity,that is,this incremental performance can play an intermediary role in reducing the cost of equity refinancing;(4)The more stable the cash dividend payment is,the more obvious it will reduce the cost of equity refinancing,and the dividend stability plays a positive moderating role.Through the above research conclusions,this paper draws main enlightenment,provides dividend policies and relevant suggestions for companies in refinancing decision-making,and finds a new perspective of reasonable and effective control of refinancing costs,that is,enterprise managers should control the dividend payment rate and stability according to their own conditions,and give play to the economic role of dividends.The improvement of financing efficiency and the reduction of financing costs are conducive to the long-term development of enterprises in the future.External investors should judge the authenticity of indicators when using statement data.Regulators should also comprehensively investigate the motivation behind each policy and the information released by the enterprise,so as to improve the operation efficiency of the capital market and contribute to the healthy and stable development of the capital market.