Foshan Lighting Dividend Distribution Policy Research Based On Life-cycle Theory

Enterprise life cycle theory, provides a new way of thinking for the study of enterprise management. As an important financial policy dividend distribution policy, is closely related to the survival and development of the enterprise and shareholder interests. Based on the lifecycle theory study of company’s dividend policy, also became a small research hot spot. Foshan lighting as a listing for a long time, and long-term adherence to the distribution of cash dividend "cash cow" company, whether the dividend distribution policy and related enterprise life cycle, has become a problem that worth exploring.Were first introduced in this paper with the examples of Foshan lighting retained its life cycle method, then study the dividend distribution policy in different life cycle stages, from the dividend payment rate, stability of the mode of payment, payment three aspects to explore the correlation of life cycle and the dividend distribution policy. The following research conclusions:in terms of cash dividend payment rate, Foshan lighting in the different life cycle stage no major changes; In terms of dividend payment, Foshan lighting in the early stage and growth, always choose the way to use cash dividend added local finance; In the mature period, the enterprise in order to ensure shareholder returns still choose to pay cash dividends, and higher cash amount; In stability dividend payments, selection of Foshan lighting each life cycle stage earnings than four indicators into the comparison and analysis, the result shows that dividend payments in the mature period enterprises life cycle phase stability than others. The study conclusion shows that, in the different life cycle, corporate dividend distribution policy can have different motivation, the motivation of the macro environment, is also closely related with the development strategy of the enterprise itself.