The Study On The Impact Of Local Government Fiscal Revenue And Expenditure On Corporate Cash Dividend

Based on China’s specific national conditions,this paper explains the formation motivation of cash dividend from the point of local fiscal revenue demand.It explains that in order to smooth local fiscal revenue and meet the demand of fiscal expenditure,cash dividend of listed companies will change.This paper local fiscal data of various 2007-2018 and puts them in the model,then obtains the influence of local fiscal revenue and expenditure characteristics on cash dividend of local enterprises.Cash dividend is important local fiscal gap.That is,when local fiscal gap increases,cash dividend decreases.When local fiscal gap decreases,cash dividend increases.According to theoretical analysis,its specific reason is when local fiscal gap increases,local government may increase the seizure of local enterprises’ funds.Because of limited resources,the funds can be used to pay cash dividends reduce,and then cash dividends will reduce.At the same time,expand the research on the impact mechanism of non-tax revenue contribution and fiscal dependence,fiscal deficit and cash dividend.Concludes that when non-tax revenue contribution and fiscal dependence increases,fiscal deficit will increase,cash dividend will decrease.That is,non-tax revenue contribution and fiscal dependence have negative impact on cash dividend by affecting local fiscal deficit.This paper provides reference for the understanding of cash dividend policy of listed enterprises under the intervention of local government.