Does Cash Dividend Smoothing Affect the Purchase of Wealth Management Products by Listed Companies?
Set against the backdrop of the 2013 cash dividend regulatory policy,this paper employing a difference-in-difference model to test and find that an increase in cash dividend smoothing can inhibit the behavior of companies purchasing the wealth management products(WMPs)using data from non-financial listed companies on China's A-share market from 2011-2019.Channel tests reveal that cash dividend smoothing increases corporate fi-nancial leverage and attracts independent institutional investors,thereby exerting debt governance and institutional investor governance effects,which in turn reduce the company's WMPs.Further analysis shows that the impact of cash dividend smoothing on WMPs is more significant when there are severe management agency problems within the company,the ownership nature is non-state-owned,and in regions with a high density of financial institution branches.Additionally,cash dividend smoothing alleviates the crowding-out effect of WMPs on industrial investment and helps guide companies back to industrial operations.
万方数据
维普
