Empirical Study On Cash Dividend Policy Based On The Sustainable Growth Of Enterprise

Development is the permanent theme, and evolution is the eternal laws of market economy. If an enterprise want to survive, it must have a competitive advantageto pursuit growth. Financial resources and investment chance constrained the development of enterprise. Growing at the speed of more than enterprise sustainable growth will lead to enterprise resources nervous, at the speed of less than enterprise sustainable growth will cause the waste of resources. Thus, in a competitive market environment, whether it is growing too fast or a lack of growth is not conducive to long-term and stable development of enterprises. Now, the problem of achieving sustainable growth is an urgent need to solve. So we must in order to realize enterprisesustainable growth as the goal orientation to formulate corporate financial policy. Since2001, the China Securities Regulatory Commission issued a series of encouragingdistributing cash dividend policy of listed companies. These policies are referred toas the "half a mandatory dividend policy, and it was modified in2008. More andmore companies choose to distributing cash dividend. Under the background, the research on cash dividend policy is very necessary.According to the theory of financial sustainable growth and cash dividend theory as the instruction, the article carry on the empirical analysis from the perspective of maintaining sustainable growth, and make the2007-2011China’s Shanghai andshenzhen exchanges the relevant data of listed companies as the research object. First of all, Choose the sustainable growth model according to the comparative analysis. Then compare enterprise sustainable growth rate and the actual growth rate. When the actual growth rate is greater than the sustainable growth rate for high growth,or else, the low growth. Finally, use the empirical research and analysis to analysethe change trend of cash dividend payment rate and the main influencing factors of cash dividend policy. The results prove that: growth rate, profitability, investmentopportunities, debt paying ability, dividend payment rate of the previous period andthe growth rate has significant effects on the dividend payment rate in the samplesof high growth, and operation ability impact on cash dividend payment levels was not significant. In the samples of low growth, growth and dividend payment rate of the previous period Impact on the current dividend payment rate significantly, and other factors were not significant. According to the results, the article put up some questions about cash dividend distribution, and put forward corresponding Suggestions.