Financing Constraints And Dividend Allocation Of Listed Companies In China Impact Study

At the present stage of our socialist capital market.Financing constraints is a common and significant problem,but adequate funding for a business is essential,if there was no sufficient funds,it is difficult to run healthly.On the one hand,because of financing constraints and other issues related to financing,companies need to consider how to fund.On the other hand,due to the profit generated by the operation of the enterprise needs to be allocated,as well as the existence of other issues related to the distribution of corporate profits,enterprises also need to consider how to use the cash.It can be seen that financing constraints,free cash flow,cash dividend distribution is very important for the operation of the enterprise,and there are countless links etween them.Therefore,in recent years,with the three related issues have been the focus of attention of many scholars,the study of the three is particularly.The relationship between the three policies of cash dividend distribution,and then attempts to explain how financial constraints affect the allocation of corporate cash dividend policy through the free cash flow as the intermediate variable.Concrete is the main method of learning and summarized combined with the classical theory based on previous research,through theoretical analysis,the relationship from the perspective of theory to study the financing constraints,free cash flow,cash dividend policy of enterprises between the three.Then by constructing a multi index system of financing constraints of listed firms in China coefficient of financing constraints,then the sample according to the financing constraint coefficient from the top thirty percent of the samples as the high financing constraint group,after thirty percent of the sample as low financing constraint group,then use descriptive statistics,multivariate linear regression on the full sample and the high financing constraint group,low financing constraint group carries on the empirical analysis of relationship between relations respectively explore the financing constraints and free cash flow,financing constraints and corporate cash dividend policy as well as the three.Finally,by setting robustness test,the stability of the conclusions of this study is demonstratedGet the following conclusions through empirical research: first,on the whole,China's listed companies dividend distribution of the main source of funding is the enterprise free cash flow,the cash dividend payment rate is higher the more adequate enterprise free cash flow,free cash flow sufficient enterprises improve the level of dividend payments,reduce the agency cost business owners and operators,also pass the information to the market in favor of the company.Enterprise financing constraints degree higher representative enterprise financing constraints more enterprises through external financing means to obtain funds more difficult,more enterprises tend to use internal funds to solve the funding problem,enterprises will tend to retain more money.The corresponding companies will reduce their cash dividend payment level.Second,there is a significant positive correlation between the free cash flow and cash dividend of listed companies with lower financing constraints.The impact of free cash flow of listed companies on the corporate cash dividend policy is not significant.The company's external financing constraints called low financing ability,the smaller influence of external factors on the financing of free cash flow,so the dividend policy and the overall sample present situation is similar,consistent with agency theory and information theory.While facing greater enterprise financing constraints of the external financing is difficult,enterprises tend to retain more funds to meet the demand for funds,which will produce the interference on the relationship between free cash flow and cash dividend distribution rate,positive effect so that the free cash flow of the cash dividend distribution rate is significant.So,to solve the financing constraints faced by companys of China,enterprise can effectively coordinate relationship between the cash dividend policy of financing constraints,free cash flow,is one of the important conditions to establish and improve China's capital market.However,due to the limitations of the author's knowledge and other objective conditions,there are still many deficiencies in this study,and some other problems have been found in the study,which need further exploration.In this paper,the author puts forward some ideas on the basis of the later research and the shortcomings of the study.This paper has the following deficiencies and needs furtherstudy.A measure of financing constraints is a reference to the research of many scholars before,there are a lot of criteria for the classification of financing constraints,we consider to reduce the correlation between variables and the choice of construction financing constraint index system to measure the financing constraints faced by enterprises,but the enterprise ownership or enterprise scale as the basis of dividing may be more in line with China special economic situation.Two,in the sample,this paper selected 2012 to 2014 three years of data,and then three years of data integration together,become a whole sample to study,although this approach increases the number of samples,reduces the possibility of selection bias caused by small sample,further improved the accuracy of model regression estimation.But this does not exclude the same company free cash flow or financing constraints are sticky problems,so as to return to result in a certain influence,so we still need further research.Three,due to the availability of data,this paper only studies the free cash flow of listed firms,financing constraints and cash dividend distribution,and the relationship between them,and these conclusions are applicable to non-listed company,non-listed company needs for samples for further research.Third,in the financing constraints.The influence of the same "free cash flow and cash dividend policy,financing constraints on the same enterprise cash dividend payment will affect the financing constraints,companies,free cash flow of enterprise cash dividend willingness to pay was not notable.Firms with low financing constraints show significant willingness to pay cash dividends for free cash flow.So,to solve China's enterprises are facing higher financing constraints,enterprise can effectively coordinate relationship between the cash dividend policy of financing constraints,free cash flow,is one of the important conditions to establish and improve China's capital market.However,due to the limitations of the author's knowledge and other objective conditions,there are still many deficiencies in this study,and some other problems have been found in the study,which need further exploration.In this paper,the author puts forward some ideas on the basis of the later research and the shortcomings of the study.This paper has the following deficiencies and needs further study.A measure of financing constraints is a reference to the research of many scholars before,there area lot of criteria for the classification of financing constraints,we consider to reduce the correlation between variables and the choice of construction financing constraint index system to measure the financing constraints faced by enterprises,but the enterprise ownership or enterprise scale as the basis of dividing may be more in line with China special economic situation.Two,in the sample,this paper selected 2012 to 2014 three years of data,and then three years of data integration together,become a whole sample to study,although this approach increases the number of samples,reduces the possibility of selection bias caused by small sample,further improved the accuracy of model regression estimation.But this does not exclude the same company free cash flow or financing constraints are sticky problems,so as to return to result in a certain influence,so we still need further research.Three,due to the availability of data,this paper only studies the free cash flow of listed firms,financing constraints and cash dividend distribution,and the relationship between them,and these conclusions are applicable to non-listed company,non-listed company needs for samples for further research.