Impact Of High-speed Rail Opening On Corporate Cash Dividend Distribution

As one of the most basic and controversial financial policies of listed companies,cash dividend distribution is not only an important way for investors to share the company’s operating results,but also an important tool for the regulatory authorities to focus on and maintain the stability of the capital market.Information plays a very important role in the capital market.Information asymmetry leads to high agency costs.Assigning higher cash dividends is one of the consequences of information asymmetry.The company’s dividend policy is an important way for investors to obtain investment returns.It is also an important condition for the healthy and stable development of the capital market.The appropriate dividend policy is to increase the company’s value,protect the shareholders’ dividend distribution rights,and enhance the attractiveness of the capital market.Vitality is of great significance.Geographical factors hinder the spread of information.As the distance between investors and companies increases,the cost of acquiring shareholder information and the cost of management supervision also increase.In order to reduce agency conflicts,the company will pay higher cash dividends.This phenomenon is more pronounced in companies with higher free cash flow and limited investment opportunities(John et al.,2011).Chinese transportation infrastructure is developing rapidly,especially as a representative high-speed railway,which makes the regions more compact,the talents are more convenient to flow,the enterprises pay more attention to cooperation,and the convenience and efficiency of production and operation are obvious.More and more scholars are also concerned about this research problem.In recent years,the economic effects of high-speed rail has gradually become a research hotspot for domestic scholars.At present,domestic and foreign scholars’ research on the high-speed rail economy mainly focuses on the macro level.On the micro level,it mainly involves high-speed rail affecting capital markets and corporate financial decisions.Then,will the construction of high-speed rail affect the distribution of corporate cash dividends? If so,what is the transmission path of the high-speed rail to the dividend distribution? Therefore,this paper takes the corporate cash dividend as the starting point and discusses the economic effects of the opening of the high-speed rail from a micro perspective.This paper uses CSMAR and WIND database to obtain sample data of Shanghai-Shenzhen A-share listed companies in 2005-2016,after eliminating financial and insurance companies and enterprises with missing variables,using DID method to open high-speed rail before and after the listing of companies passing through the city.The impact of cash dividends is tested and the following conclusions are drawn.First,in cities with high-speed rail,the distribution of corporate cash dividends is reduced.Second,compared with non-state-owned listed companies,the suppression of cash dividend distribution by high-speed rail is more obvious in state-owned listed companies.Third,combined with business The degree of complexity analyzes the impact of high-speed rail opening on cash dividends.The results show that compared with the simple business,the suppression of cash dividend distribution by high-speed rail is more obvious in enterprises with complex business.Fourth,audit quality as a kind of The effective external supervision mechanism has an alternative effect on the construction of high-speed rail.Compared with the listed companies that choose the four major audits,the suppression effect of the high-speed rail opening on cash dividend distribution is more obvious in the non-four audited listed companies.Further research found that(1)the opening of high-speed rail did not reduce the financing constraints of enterprises along the line;(2)high-speed rail opened cash dividends The suppression is mainly reflected in the mandatory dividend policy.(3)for companies with high free cash flow,the high-speed rail opening will have a greater inhibitory effect on cash dividends.The research in this paper links the macro-public policy of Chinese high-speed rail with micro-enterprise behavior.The research results show that the opening of high-speed rail reduces the information asymmetry between external information users and companies,reduces the distribution of dividends,and improves the operational efficiency of capital markets.Provide empirical evidence for the impact of Chinese high-speed rail construction on the capital market environment.The research in this paper links Chinese high-speed rail macro-public policy with micro-enterprise behavior,tests the opening effect of Chinese high-speed rail,and enriches the external influence factors of corporate cash dividend policy and the theoretical literature on the influence of geographical location on micro-enterprise behavior.,has important theoretical and practical significance.The possible innovations of this paper include:(1)From the perspective of research,the impact of transportation infrastructure on micro-financial decision-making of enterprises is studied from the micro level.The existing research on macro-level cannot effectively explore the path of high-speed rail opening to enterprises and individuals.And the mechanism,there is no clear path to explain only from the perspective of relevance can not effectively explain the problem,the research of this paper supplements the existing literature.(2)In theory,information asymmetry and agency problems due to geographical location have an impact on dividend distribution(John et al.,2011;Zhang Weiting and Wang Zhiqiang,2015),while the opening of the high-speed rail eases the information generated by distance factors.Symmetric and agency issues,which reduce cash dividend payments,complement John et al.(2011)on the relationship between geographic factors and corporate dividend policy.(3)In terms of research methods,quasi-natural experiments have alleviated endogenous problems.The existing researches mostly discuss the internal management characteristics of the enterprise and the nature of the enterprise,and there are few studies on the impact of transportation infrastructure on corporate behavior.Research on transportation infrastructure can effectively avoid endogeneity problems.Based on the existing research,this paper will further explore the impact of corporate cash dividend distribution on transportation infrastructure.