Author(s)

Yihang Guo

Corresponding Author

Yihang Guo

ABSTRACT

Dividend distribution of domestic listed companies is inherently characterized by discontinuity and instability, and dividend distribution, which is one of the important financial decisions in the context of corporate equity pledges, is also likely to be affected. Therefore, this paper selects data of A-share listed companies from 2016-2021 to investigate the impact of controlling shareholders' equity pledges on dividend policy choices and to examine the moderating effect of financing constraints in this process. The results show that firms prefer to pay stock dividends after making equity pledges, and this preference becomes stronger as the proportion of equity pledges increases, and financing constraints play a positive moderating role in the effect of equity pledges on both cash and stock dividends.

KEYWORDS

Equity pledge, Dividend policy, Financing constraints