Research On The Cash Dividend And Inefficient Investment In Petroleum And Petrochemical Listed Companies

Investment is an important financial content for the enterprise to create the future profits of a certain period of the future, and to realize the value of the company. China Petroleum and petrochemical companies to achieve profits continue to the expansion of the scale, many companies invested some of the low efficiency of the project, led to the company investment fund use efficiency is low, unable to realize the optimal allocation of resources,resulting in an inefficient investment. Many scholars at home and abroad attribute inefficient investment to financing constraints and agency problems. In modern financial theory, cash dividend policy has the function of signal transmission and agency cost reduction. Therefore,this paper will study the governance effect of cash dividend on inefficient investment in petroleum and petrochemical listed companies from the perspective of dividend signaling theory and agency cost theory.On the basis of the theory in this paper, collecting petroleum and petrochemical listed companies the relevant data from 2009 to 2014, were used to study the relationship between cash dividend and inefficient investment. Through the empirical analysis indicates the relationship between the two, and the inner link. First, based on modern investment theory and cash dividend policy theory and combined with the actual situation of oil and petrochemical listing Corporation, the paper analyzes the relationship between cash dividend and inefficient investment, and puts forward the research hypothesis.Secondly, the Richardson model is used to measure the investment efficiency of petroleum and petrochemical listing Corporation by the residuals of the expected optimal investment model.According to the research hypothesis, the investment model and the deficiency model are established respectively. Finally, through the relationship between excessive on cash dividend and investment empirical analysis, draw the following conclusion: enterprise surplus of free cash flow is more, greater degree of excessive investment; because of the free cash flow surplus lead to overinvestment problem can govern by cash dividends distributed. And in the past year continuous faction and lack of investment in the regression results show that within the enterprise free cash flow more scarce, the degree of lack of investment and more serious;for free cash flow shortage caused by the problem of insufficient investment can also throughthe usual continuous distribute cash dividends have been alleviated. The results of empirical analysis support the theory of dividend signal and the theory of agency cost.