The Impact Of Private Equity On The Cash Dividend Policy Of Listed Companies: Evidence From GEM

In 2018,China proposed to set up a new section of capital market to service technology innovation enterprise-" Science and Technology Innovation Board.".The Growth Enterprise Market,also called GEM,its intention is similar to the science and technology innovation board,its initial positioning is to serve high-tech enterprises.Since the establishment of the GEM,many high-growth listed companies have repeatedly made huge amount of cash dividend,which has caused investors to worry about whether the cash dividend is to benefit the controlling shareholders.As a type of venture capital,PE has stronger professional and management ability than other small and medium shareholders.As a result,whether PE will proceed from the protection of its own interests,participate in the governance of listed companies,and affect its cash dividend policy is the starting point of this paper.This paper combines the aspects of private equity investment and cash dividend policy through the second type of agency problem.Based on the perspective of private equity investment,this paper discusses the impact of private equity investment and its characteristics on the cash dividend of listed companies on the GEM.This article takes a sample of listed companies from 2009 to 2017,involving a total of 570 listed companies and 1,788 samples.Through the logistic model,the impact of private equity investment intervention on the willingness of listed companies to distribute cash dividends was analyzed.The regression model was used to analyze the impact of private equity investment background and investment methods on the cash dividend distribution level of listed companies.The main conclusions of this paper are four parts.First,private equity investment will continue to supervise the controlling shareholder and management in order to protect its own interests,and curb the controlling shareholder or management by reducing the willingness and ability for listed companies to issue cash dividends.Second,the higher the shareholding portion of private equity investment,the stronger the supervision and management ability of private equity investment,and the lower the cash dividend distribution level of listed companies.Third,listed companies with state-owned private equity investment have lower levels of cash dividends.Fourth,joint investment by private equity investment institutions will reduce the level of cash dividends paid to listed companies.According to the conclusions,this paper proposes that China needs to improve the capital market system,reduce the degree that controlling shareholders and management encroaching the interest of small and medium shareholders,encourage and support the development of PE,enhance the role and status of PE in the economy,and finally,seize the opportunity of setting science and technology innovation board to improve the ability and efficiency of China's capital market to serve technological innovation enterprises from the institutional level.