The Research Of Dividend Policy And Enterprise Value Of Listed Companies In China

The dividend policy is one of the main contents of finance management theory and the core. of the profit distribution for the listed companies. Dividend policy of listed company is a key part in maximizing enterprise value, and it is also an important way for investor to obtain investment repayment. The listed companies are the base of the capital market and firms' aim is to maximize their value. In such framework what form dividend policy should the listed companies take. The dividend policy is a puzzle in the financial field.In 1960s, American financier Miller and economist Modigliani published a paper named "Dividend Policy,'Growth, and the Valuation of Share" in which the viewpoint dividend unrelated to corporation value first appeared. Since then, lots of western scholars have long been probing the issue of dividend policy. They have conducted a lot of theoretical studies and empirical analyses, and put forward various theories with different ideas. Although so many scholars and so many theories, the dividend policy has not reached consensus. Scholars of China studied from them and obtained certain achievement on the basic of Chinese situation.At first, the paper introduces the theories of the dividend policy and enterprise value, and summarizes papers national and abroad. Then it analyzes the current situation of the dividend distribution of listed companies in China and the existing problems. Later, with normative and empirical analysis, the paper takes Shanghai 180 Index constituents as sample, uses the least square regression analysis with dividend distribution, enterprise value, profitability and firm size. Finally, the result of research indicates that the enterprise value of Chinese listed companies has no remarkable relation with if they pay dividend, however, the amount of dividend has positive effect to enterprise value. At the same time, in order to increase the enterprise value of listed companies in China, the paper analyses the result of the research, considering the situation of our country. On the base of the research, the paper makes some suggestions for the dividend policies establishment and. improvement of Chinese listed companies.