The Study Of A Semi-mandatory Dividend Policy’s Influence On The Value Of Listed Company

Dividend policy is the profit distribution decisions in the listed companies,dividend distribution will directly influences the future development of the enterprise.How to formulate the reasonable and effective dividend policy is an important contentin the decisions of listed companies. Manufacturing industry is an important pillarindustry of our country, in2009, China accounted for15.6%of the total cost in theglobal manufacturing industry, became the second largest industrial countries,whichjust after the USA. Manufacturing industry is a labor-intensive industry, which can beaffected by the external environment easily; on the other hand, whether at home orabroad, our enterprises are in the volatility of the market environment, the enterpriseshould retain certain money to cope with sudden changes. Due to the short time, theconstruction of capital market in China is not enough. In order to protect the interestsof investors, regulators issued a series of rules and regulations to force the enterprisewhich have refinancing programs to use cash bonuses. The rules will bring a certaininfluence to the manufacturing industry. So this article studied the influence ofsemi-mandatory dividend policy on the manufacturing listed companies, and chosethe enterprise value as the research object. Firstly the article reviewed the dividendpolicy theory, then explained the overall cash dividends of listed companies and putan emphasis on the cash dividends of manufacturing industry: that was the number ofcompanies which chose to use cash dividend increases, but the cash amount did notchange obviously. Then, this article selects the enterprise value as the dependentvariable, cash dividend amount, financing plan, free cash flow as the independentvariables, select the related data from2006to2011in the693a-share listedmanufacturing company as samples, use STATA software to carry out the empiricalresearch, to investigate the changes of enterprise value. We drew the conclusion: thesemi-mandatory dividend policy has the negative influences on the enterprise value oflisted companies which owe the financing plan and the insufficient free cash flow, andthe larger the cash dividend ratio, the greater the impact on enterprise value. Finallywe puts forward the relevant policy recommendations on the basis of the conclusions,to provide a theoretical and empirical support to the companies when they make thedividend policy.