Cash Dividend Catering And Equity Financing Efficiency

Dividend policy refers to the company’s general meeting of shareholders to discuss how to make the distribution of the company’s interests. It is also a trade off between retained in the company to be used for re-investment and return of the owner. But there is still exist the ubiquitous "miser" phenomenon in China’s capital market. In order to guide the healthy development of China’s capital market and protect the majority of investors’ interests, from 2000 the relevant regulatory authorities has implemented a series of semi mandatory dividend policy.This policy refers to the company’s refinancing qualifications and the company’s cash dividend payment level and also links to the company’s financing and distribution. The appraise of this policy caused a heated debate in academic circles. On the one hand, the mandatory dividend policy can enhanced the company’s return to consciousness and protect the investors’ rights; But on the other hand, the government intervention in the dividend policy is contrary to market mechanism. In addition, listed companies will make self dividend policy adjustments according to the policy. According to the regulatory policy of the listing Corporation to take the policy, under the policy to meet the strategy, may make the policy of protecting the interests of investors can not be realized. In order to reflect the market reaction after the implementation of semi mandatory dividend policy, this paper examines the effectiveness of taking cash dividend to meet the equity financing efficiency of China’s capital market to study the effectiveness of the semi-compulsory dividend policy.This research take the 2008 new quantization proportion of cash dividend "decision" as background, through the empirical data of quantitative easing in 2008 to 2014 seven years of listed companies to study listed companies generally cater to the behavior characteristics and test of semi mandatory dividend policy since the implementation of the effectiveness. From the CSMAR database obtained data variables, the cash dividend distribution of the listed company is divided into caters for group and non caters for group respectively were compared and distinguished deliberately to cater to the group and non deliberately to cater to the difference between the results of observation group efficiency of equity financing. The empirical model is established, using descriptive statistical analysis, correlation analysis and regression analysis method to test the mandatory dividend policy is the time to take the cash dividend catering to the effects on the efficiency of equity financing in the capital market. And in view of our country concentrated ownership and listed implement approval system characteristics, the article further examines the relationship to cater to the company the largest shareholder equity ratio and cash dividend between and the actual equity refinancing efficiency of the company’s financing situation.This study found that distance "decision" issued by the time more far, company for nearly three years, the cash dividend level of fluctuations in the smaller, the more sufficient time to smooth dividend; inverse distance "decision" issued by the time is near, the company cash dividend volatility. And the equity refinancing of listed companies nearly three years the cash dividend volatility than non equity re financing company; take cash dividends to cater to improve the capital allocation efficiency of equity financing, but decreased the equity of transaction efficiency. And the companies that try to meet the cash dividends are not only unable to improve the efficiency of equity funds, but also can not improve the efficiency of the allocation of equity funds. Further research has been carried out in the company to deliberately cater to the cash dividend policy of the company’s equity re-finance Companies financing efficiency also declined.And this paper also found that reducing the proportion of the largest shareholder and maintaining a moderate level of competition in the industry will help to curb the behavior of listing Corporation to meet the regulatory layer. In order to perfect our country’s Semi-compulsorydividend policy and improve the equity financing efficiency of the capital market, this paper puts forward a reference to the internal and external supervision.