Study On The Influence Chinese Listing Corporation Has On It’s Firm Value From The Perspective Of Behavioral Finance

Dividend policy plays an important role in decision-making in the listing Corporation.However, there is no consensus on dividend policy between Chinese and foreign scholars.The China’s securities market has a short history with unsound market system andmechanism, therefore, investors and enterprise managers in making related decisions tend toexhibit non-rational characteristic. The Research on the influence of dividend policy ofChinese listing Corporation on its firm value, which is based on behavioral finance theory,has extremely important theory significance and practical significance.Based on the foreign and domestic research, this article analyses the influence on firmvalue from the aspects of different kinds of dividend policy. Combining the theoreticalanalysis results, this article will study the influence of dividend policy of Chinese ListingCorporation has on its firm value on condition that when the investors are rational while themanagers are irrational and when the managers are rational while the investors are irrational.The empirical results show that cash dividend payment or not, share dividend, cash dividendpayout ratio, stability of dividend policy has significant negative correlation relationshipwith enterprise value and Stock dividend per share、Stock dividend payment or not hassignificant positive correlation relationship with enterprise value on condition that theinvestors are rational while the managers are irrational; while, dividend payment or not、cashdividend payout ratio、cash dividend per share、cash dividend payment or not、stability ofdividend policy and dividend payment level while the dividend is stable has significantpositive correlation relationship with enterprise value on condition that the managers arerational while the investors are irrational.Finally, the paper listed the suggestions on China’s listing Corporation choosingdividend policy to enhance corporate value on condition that investors are irrational and onChinese investors making scientific investment decision on condition that managers areirrational.