A Study Of Private Equity's Effect On The Dividend Policy Of The Companies Listed On GEM

Private equity investment originated in the late 1940 s in America,entering in China in the mid-eighties.After several decades of rapid development,the number of private equity investment in China has more than 10,000 as of the end 2015.According to Zero2 IPO Group's private equity data,it shows that China's private equity market occurred a total of2845 investment cases and the amount of investment reached 385.974 billion yuan.The introduction of private equity investment institutions can reduce the proportion of the majority shareholder of the company,weaken its controls.It affects the implementation of the company's cash dividend policy through the impact of corporate governance,which helps to improve the corporate governance structure and searches a new way to improve cash dividend policy.As we all know,GEM has mainly small and medium enterprise,with operating high-risk and high cash dividend.This paper tries to study how private equity affects the dividend policy of listed firms on GEM.And it mainly study how private equity affects the dividend policy of listed firms for different perspective,such as background,shareholding and reputation and so on.We hope it can provide a reference value for the company's management,private equity and policy makers.This paper adopts the method of normative analysis combined with empirical test and includes six parts.Firstly,it introduces the background and significance of this question and also elaborates the research ideas and problems to be solved.Secondly,it sorts out the existing literature at home and abroad and introduces reluctant theories related to the subject.Thirdly,it analyzes the impact of PE on the cash dividend policy of listed companies on the GEM from the perspective of private equity investment characteristics,and also analyzes how PE influence the cash dividend policy of listed companies on the GEM,which lays a theoretical foundation for the empirical research.Fourth,it mainly introduces the hypothesis and the main variables used in the study and expounds the reason why this article chooses the GEM as the research object.Based on this,the binary Logit model and multivariate linear regression model were constructed by using the method of Wang Huacheng(2007),Wang Huijuan and Zhang Ran(2014).Fifth,it examines the influence of private equity investment on cash dividend payout,and then examines the influence of the characteristics of private equity investment on cash dividend payout.Sixth,the paper generalizes the result.This paper made research combing dividend policy with private equity by means of theoretical analysis and empirical test.The paper concluded that the company which has PEbackground wound have a stronger positive correlation with cash dividend policy.The cash dividend policy will be affected by the characteristics of private equity investment,state-owned background,PE share,joint investment will significantly affect the level of dividend payment.Particularly,the private equity investment which has the background of foreign capital has no significant effect on the cash dividend payout ratio.PE share and the level of cash dividend payment has positive correlation.That is to say,the higher PE share is,the amount of cash dividends is the higher.Besides,compared to the low reputation of PE participating in company,the high reputation of PE participating in company has the higher cash levels.According to the conclusions of this paper,we put forward to some suggestions.