Research On The Impact Of Dividend Tax Reform On The Dividend Polic Of The Company

Based on the tax policy's constraints on the company's financial activities,scholars put forward the theory of tax capitalization on the role of the dividend tax economy.Then,what impact will tax reforms have on the market effect of tax capitalization? At the same time,dividend policy is one of the three core elements of modern company's financial management activities,and taxation policy is a very important influencing factor in the legal factors that affect the company's dividend distribution policy.Will the dividend distribution policy of the company be adjusted based on the market response triggered by the tax reform? How to adjust? These questions have always been the subject of constant inquiry by scholars.This article combines the three dividend tax reforms since the beginning of the 21 st century in China—the dividends of individual dividends received in 2005 were reduced by 50%,the corporate income tax rate in 2008 was reduced from 33% to 25%,and the individual's differential tax rate was imposed on dividends in 2012.The dividend income expands the post-distribution valuation model constructed by Harris and Kemsely in 1999 to study the impact of dividend taxation on stock prices in China's capital markets,explore whether there are dividend taxation capitalization effects in listed companies in China,and empirically analyze the impact of taxation reforms.The effect of dividend taxation capitalization.The test of tax capitalization effect is the market reaction.Dividend policy is the test of company's decision-making.Theoretically,the company's decision-making needs to refer to the market's reaction status.Therefore,in the study of the impact of the reform of the tax system on the dividend policy of listed companies in our country,this paper conducts an empirical analysis based on the extended dividend taxation capitalization effect model.Through empirical analysis,it is concluded that China's listed companies have a tax burden on dividends and have a negative capitalization effect.After the reform of the tax system,the capitalization effect of the dividend tax of listed companies is less than the taxation effect of dividends before taxation.From the regression results,it is analyzed that the reform of dividend tax affects the dividend distribution policy of listed companies in China,that is,the tax reform improves the dividend payment rate of the company.In addition,the study also found that the company's year-end ROE and price-earnings ratio have a positive impact on dividend policies.According to the empirical regression analysis,in the empirical results in 2008,the regression coefficient of the ratio between the undistributed profit and book value of common stockholders' equity and net profit interaction coefficient was significantly negative by the WLS correction regression,which is contrary to the original assumption.The negative regression coefficient may be due to the low quality of retained earnings in China.Currently,companies with high surpluses do not represent higher surpluses in the future and are more likely to decline in the future.Therefore,the increase in retained earnings of the company may have the opposite result.Therefore,it is recommended that tax reforms should impose a certain percentage of income tax on companies that retain too much of their surpluses.At the same time,combining with the current situation that China's listed companies' stock dividends are distributed in a small proportion,we propose to implement a policy of exemption for individual investors' stock dividends to balance the distribution of stock dividends in China.