| As market value management becomes increasingly prevalent, refinancing has become an important means of capital operation and ways of growing size and upgrading business structure for listed companies. Among the ways to refinance, the private placement with lower approval procedures and requirements become the first choice of many listed companies. To protect the interests of investors, the Commission issued guidance related to cash dividends for the refinancing companies, and ordered listed companies should obey the law that cash dividend cumulative among three years before public offerings divided by average annual net profit of the company can not be less than 30%. Although the law is not for private placement, but according to preliminary statistics, it found that most of companies with the private placement tend to provide cash dividends prior to the private placement. Based on this phenomenon, this paper presents research questions: whether listed companies with private placement intend to make use of different dividend allocation decisions to influence the announcement effect of private placement, and ultimately benefit the major shareholder? At present, most scholars in the study focused on the issues related to the cash dividend before and after the private placement, combined with less stock dividends, converting capital. While scholars less stand from signal transmission angle to study the relation between dividend decision and the private placement. So to study the effects of decisions of different dividend distribution on the late private placement announcement effects has practical and theoretical significance.Based on this phenomenon and theoretical research, this paper used theoretical analysis and empirical analysis method to study the influence of the different dividend decision-making on the announcement effect of the private placement. In this paper, it chose the listed companies which complete the private placement during 2010 to 2014 as samples, the empirical analysis is divided into three parts. First, the paper used listed companies that hadn’t completed private placement as comparison, and used Wilcoxon test to discuss characteristics of dividend distribution decisions before the private placement of listed companies. Secondly, used the mean T-test to verify the existence of the announcement effect of the private placement. Finally, used multiple regression model to further study the effects of different dividend decisions on the announcement effects of private placement in the perspective of both kinds of the dividend and level of it.The main conclusions of this study include:(1) listed companies with private placement tend to choose cash dividend and converting capital before the private placement; the listed companies with the private placement doesn`t have different tendencies on changes of dividends,compared with the listed companies without private placement.(2) Prior to private placement, the late payment of cash dividends has a significantly negative impact on the announcement effect of the private placement, while capitalization has significantly postive and stock dividend has no effect on it.(3)At the same time, changes in the level of cash and stock dividend also don’t have a significant impact on the late announcement effect of private placement while capitalization has positive significance.According to the conclusions of this paper, this paper makes up the following recommendations for listed companies, investors and regulators:(1) Listed companies should develop a reasonable dividend distribution decisions, focusing on dividend signal transmission.(2) Investors should maintain a rational and sensitive attitude, then adjust portfolio strategy flexibly.(3) Government regulators should enable listed companies with private placement to obtain freedom of cash dividends, the regulatory focus can turn to "High stock dividend and converting capital."... |
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