Research On Market Reaction Of Differentiated Dividend Guidelines Policy

"Listing Company Supervision Guidelines No.3-Listed Companies Cash Dividends" is the most stringent dividend policy in China’s history issued by the China Securities Regulatory Commission(released on November 30,2013).This article focuses on this policy,through the event research method,to test the market reaction after the introduction,that is,investors’ attitude towards the promulgation of the new policy,and further study the sample according to the life cycle and financing constraints,and examine the policy.Examine the impact of this policy on the different market reactions generated by heterogeneous companies.The empirical results show that investors do not agree with the guidelines for differentiated dividends.This paper believes that due to the fact that Chinese investors have no obvious preference for cash dividends,and policy interventions may have adverse effects on the company’s normal business decisions.Further analysis,listed companies with higher growth ability and stronger financing constraints have worse market performance during the event period;on the one hand,the growth of listed companies is relatively weak,and more funds are needed to expand market share and increase development speed.The policy has increased the dividend pressure of growth companies and has certain restrictions on their healthy development.On the other hand,listed companies facing strong financing constraints have to cope with policy consumption more while their external financing capabilities are poor.Internal financing resources are used for cash dividends,which exacerbates the shortage of cash flow supply.In addition,listed companies with strong growth and high degree of financing constraints have strong internal internal demand for financing and are subject to severe external financing constraints,so the market is more pessimistic about such companies.The research in this paper can not only enrich the research literature of existing dividend policy,but also provide some reference for improving China’s dividend policy and regulations.It can also provide corresponding research reference for the existence of supervision public opinion in China’s dividend regulation policy.The research content of this paper includes the following six parts:The first part is the introduction.Firstly,it introduces the origin and main content of the "Differentiated Dividend Guidelines" researched in this paper.Secondly,it introduces the dividend distribution of listed companies from 1990 to 2017 in China,clarifies the current research direction of this paper and its research significance in theory and reality.Then it shows the paper’s Main research framework,empirical research methods used,and innovations;The second part is the literature review.This part first reviews the literature on the relevant research of dividend policy,mainly focuses on the research based on life cycle theory and financing constraints;secondly,it evaluates the relevant literature research of cash dividend policy;The literature of preference research is reviewed;finally,the research status of the research field in this paper is summarized;The third part is the theoretical analysis and research hypothesis.According to the summary of previous research conclusions,theoretically combing and logically deducing the relationship between life cycle theory,financing constraints and company dividends,and secondly,how life cycle theory and financing constraints affect investment The attitude towards listed companies after the introduction of differentiated dividend guidelines,and a reasbonable logical chain;finally,combined with the research of the predecessors and the analysis of the thinking process,propose research hypotheses;The fourth part is the research design.Firstly,the sample data needed for empirical analysis is introduced to its selection method and access channel.Secondly,the meanings,selection motivations and calculation process of independent variables,dependent variables and control variables are explained.Finally,based on the hypothesis of this paper,combined with excess The yield method and the multiple regression method are used to establish relevant research model types;The fifth part is an empirical analysis.Firstly,the screening procedures of the selected samples of the paper are briefly described,and the overall descriptive statistics and correlation analysis are carried out according to the defined variables.Secondly,this paper analyzes the cumulative abnormal income level in different types of companies.The adjustment effect of growth and agency costs on the Guidelines for Differentiation Dividends verifies the main hypotheses proposed in this paper.Finally,the main logic of the previous empirical analysis is further analyzed and robust,including:replacing explanatory variables,and the modifications are explained.Variables calculate factors and deal with other factors that may affect the robustness of the results;The sixth part is the research conclusions and policy recommendations.Firstly,the research process and main conclusions of this paper are summarized.Secondly,according to the theoretical analysis and the conclusions found in this paper,relevant suggestions are put forward for policy makers.Finally,although the rigorous attitude is adopted to treat this research,it is also diligent in the research process.Responsible,but there are still some problems that cannot be dealt with in the research process,that is,the shortcomings of this article,but also provide some ideas for future generations.The innovation of this paper is that the perspective of selecting dividend policy research is novel.Based on the previous studies,this paper combines China’s unique"Differentiated Dividend Guidelines" policy and market environment,and studies the application of dividend policy theory in China’s capital market from the perspective of market reaction caused by policy introduction.Expand and complement.The study then took into account the heterogeneity of the sample company’s life cycle and financing constraints.The research on dividend policy has been extended in the field of applied finance.In addition,it provides relatively straightforward evidence of market acceptance of regulatory approaches.Provide policymakers with a relatively straightforward evidence of market acceptance of regulatory approaches.For the future system construction of China’s continuous regulation of the profit distribution behavior of the capital market,it also has a certain role in inspiring.