Study On The Relationship Between The Life Cycle Theory And The Cash Dividend In Listing Corporation

With the diversified development of the market economy, the pace of development thelisting Corporation has accelerated quickly. Weather the listing Corporation can operatesmoothly is related to not only the interests of the investors,the interests of the employees, butalso the healthy development of the stock market. However, the listing Corporaion of Chinanow also has many unstandard urgent problem to solve. Cash dividend distributionpolicy is one of the problems. The dividend distribution policy of any company will more orless cause a certain impact on the company’s image and reputation in the market. The reasonis that dividend policy reflects the company’s operating condition and performance levels.Therefore,the cash dividend policy is not only the problem of how to distribute profits，butalso is the problem of affecting the many other aspects in the company. From a certain angle,it also involves the refinancing problems. How to formulate appropriate dividend policy andto make the company’s after tax profits reasonably and effectively for distribution between thelarge shareholders and internal retained earnings is not only bad balance problems, but a veryimportant issue. Throughout the history of the development of the market economy of ourcountry enterprise,listing Corporation intend to in favor of re financing not returns. Thedividend policy reveals unstable and inconsistent phenomenon.In resent years, reportshave referred to cash dividend consciousness which has gradually improved the listingCorporation, however, some negative factors of cash dividend distributions still ingrained.The reasonable dividend policy can be understood as to make the company grow andshareholder expectation reached the equilibrium between the appropriate dividend policy, it isimportant for the enterprise itself internal management and external investorsto transfer the business financial conditions. From this perspective, the listing Corporationmanagement decision-making should be a full range to examine business characteristics,changes in the external environment of the different shareholder expectations, and reasonableplan of the cash dividend distribution policy. Therefore, in-depth analysis o enterprise indifferent stage of development and management environment is quite meaningful to develop areasonable and balanced dividend policy.This paper firstly introduces life cycle of enterprise and the dividend policy theory, thenselect the country Tai’an CSMAR2010years to the section data of2012Chinese listingCorporation dividend database, which removes the non ST companies and the lackof data company, and finally acquired982listing Corporation sample data, the numberreached2700.the paper looks the life cycle of enterprise qualitative features as a breakthrough point,。Then will turn point into a financial--asset liability ratio, net interestrate, the sustainable growth rate of the total assets.then it use the main ratio to dividethe Sample Firms’s life cycle into Yong-term, Long-term,Mature-term and Decline-term.Finally, using the logit model analysis of stastistical inference method to discusses thedifferences between the four types of listing Corporation corporate in distribute cashdividend based on life cycle. The conclusion shows that whether a listing Corporation payscash dividend has life cycle characteristics and whether paying the cash dividends has strongcoherence. It suggests that CSRC requires the company to combinate industry and the lifecycle of enterprise to formulate long-term cash dividend distribution policy,in order tostrengthen the stable dividend of investors and make the company in good operation.