A Study On The Impact Of Private Equity Investment On Cash Dividend Policy Of The Gem Listed Companies

As one of the main ways to pay dividend,the payment of cash dividend is an important financial decision of the enterprise,its distribution requires all shareholders in the enterprise to participate in the discussion,so as to share the business results.,Therefore the distribution policy of cash dividend is inextricably linked to shareholders.Especially,for the establishment of only eight years of the Growth Enterprise Market,many of the small and medium-sized enterprises with high income attracted private equity investment.And private equity investment as a powerful driving force to promote the listing of companies on the GEM will have a great impact on the dividend distribution.In the 1980s,private equity investment was introduced into China.When the GEM was set up in 2009,private equity investment began to develop rapidly in China.The GEM was the main exit channel of private equity capital,But also Private equity investment play an important role in the management of governance of the GEM listed companies.At the same time,private placement also attracted the attention of academics,become the focus of research.This paper combines another hot research-dividend policy research with private equity investment,study the relationship between the characteristics of private equity investment with listed enterprise dividend policy.This paper first reviews the domestic and foreign literature and related theoretical analysis,summed up theoretical basis that the private equity investment listed companies will affect the distribution of its cash dividend,theoretical basis is based on the following four theories:"Shareholder activism" theory,"a bird in hand" theory,agency cost theory,Dividend signal theory.On the basis of the definition of private equity investment and dividend in China,then it elaborates the development course of private equity investment in China,the current situation of private equity investment in China's market,including the scale of market?the scale of investment?the investment industry and so on,and summarizes the characteristics of private equity investment in China.By selecting the listed companies from 2011 to 2015 as the research object,Statistics of its dividend distribution and analysis of the characteristics.Finally,through the construction of Logistic model to test whether the participation of private equity investment affect the cash dividend distribution in the GEM listed companies,further more,through regression analysis model to study the impact of the o private equity investment characteristics on cash dividend distribution level.Research shows that private equity investment institutions will play the role of supervision and management,in order to reduce agency costs,to maintain a good reputation for external communication,listing cash out,tend to let the listed companies pay more cash dividends.At the same time,different characteristics of the private equity investment institutions have different influence on the distribution of cash dividend of listed companies.In this paper,the characteristics of private equity investment institutions are divided into holdings of private equity,private background,and joint investment.Research shows that private equity investment institutions with foreign capital and state-owned background tend to pay more cash dividend,and pay higher level of payment;The greater the size of private equity investment,the more the joint investment private equity investment,will also give listed companies more cash dividends.In this paper,through the combination of theoretical analysis and empirical test,combined with the cash dividend policy and private equity investment in two areas of research,illustrates the existence of private equity investment incentive effect on the invested companies,and studied the impact of private equity investment in listed companies The formulation of cash dividend policy has improved the dividend policy of the holding company and enriched the relevant literature research.