The Research About How The Dividend Policy Affects The Enterprise Value Of High Cash Flow Listed Companies In China

Since the1990s, our country’s stock market have gone through the development of twenty years. And it has gained great achievement. In1958, the MM theory laid the foundation of enterprise value theory. The dividend policy is one of the main contents of finance management theory. It affects the market value of the enterprise, external financing ability and internal accumulation ability. And it is essential to the future development of the enterprises.At present, scholars seldom study the dividend policy of high cash flow listed company. Therefore, the paper takes the high cash flow listed company as the starting point. It adds up and analyzes the dividend policy of high cash flow listed company. And then we will know the affect to the enterprise value. This will be conducive to appraise the dividend policy of listed company and the policy of regulatory organization. At the same time, it will promote the scientific management of the high cash flow listed company.The paper uses the method of specification and empirical research, the method of qualitative and quantitative analysis, and the method of descriptive statistical analysis to research the problem. We make some improvements in specific research methods.In the part of theoretical study, the paper summarize the foreign and domestic theoretical research. In addition, the paper analysis the dividend policy feature of the Western high cash flow company. Then it raises the reference to our dividend policy. In the part of empirical study, this paper regard the data of217high cash flow listed company from2009to2011as the sample. The paper analyses the result of the research. On the base of the research, the paper makes some suggestions for the dividend policies of high cash flow listed company.The results show that:Compared to low cash flow listed company, high cash flow listed companies are more inclined to pay dividends and high dividend payout level. The empirical results prove that there is a positive correlation between the level of the dividend payment and the enterprise value. Therefore we can get the conclusion:The enterprise value of high cash flow listed companies will be higher than the enterprise value of low cash flow listed companies. Accordingly, the paper proposes listed companies to keep high cash flow, improve their profitability, select the reasonable dividend policy, return to investors, for the reason that, they can get the higher enterprise value.This paper makes some innovations in the following areas:The paper takes the high cash flow listed company as the starting point, it is well targeted and highly targeted; Based on the actual, delineation the standard of the high cash flow, scilicet the paper thinks that the company of high cash flow must meet that free cash flow per share and operating cash flow per share are both positive; The paper increase the contrast sample, and it form a contrast between high cash flow company and low cash flow company to make the conclusions more credible; The paper analyze the dividend policy of Western high cash flow enterprise, then that will play a very good reference role.