Research On The Relationship Of Equity Refinancing And Cash Dividend Policy In The Listed Companies Of China

The dividend policy is a trade-off between the issue of return to investors and its futuredevelopment. Dividend policy, finance policy and investment policy together constitute the threemajor financial decisions of modern companies. In order to regulate the behavior of the listedcompany cash dividend payment and protect the legitimate rights and interests of the minorityshareholders,since2001, the China securities regulatory commission has released a series ofprovisions which linked the listed companies equity refinancing qualifications with its cashdividend payments.Whether it will affect the relationship between the listed company’s equityrefinancing and its cash dividend payment? Listed Companies in China just to meet the relevantprovisions of China Securities Regulatory Commission to distribute cash dividend? Whether theremay transfer benefits to large shareholders after the oriental issue by way of cash dividends?In this paper, the China Securities Regulatory Commission issued semi-compulsory dividendpolicy will be as the breakthrough point.Based on the empirical data of listed companies from2009to2011empirical test to research the correlation between the behavior of listed companies todistribute cash and equity refinancing behavior.The empirical analysis.This article from the GTAdatabase the2009-2011equity refinancing and not finance sample data of listed companies.First,equity refinancing of listed companies will be divided into the allotment and the public issuancegroup which is bound by dividend policy and the non-public offering group which is not bound bydividend policy. Then compared these two groups with not refinancing of listed companies.We aregoing to use descriptive statistics, independent samples T-test, logistic regression and multiplelinear regression method to analyze:(1)The relationship between the allotment and the publicissuance and the cash dividend before the allotment and the public issuance;(2)The relationshipbetween the non-public offering and the cash dividend after the non-public offering.The empirical results show:Before the allotment and public issuance,the financing behavior oflisted companies significantly positively related to their cash dividend distribution willingness andlevel.This shows these listed companies before refinancing is likely to distribute cash dividends toachieve the requirements of regulatory bodies.After the non-public offering,the financing behaviorof listed companies positively related to their cash dividend distribution willingness and level,butnot significant.This shows that although some listed companies may distribute cash dividends to transfer benefits to large shareholders after the non-public offering,this phenomenon is notuniversal.Finally, according to the results of the empirical analysis,I bring up some suggestions to standardthe cash dividends behavior and the equity refinancing policy.