A Study On The Relationship Between The Cash Dividend Policy And The Corporate Value

In 2011, The China Securities Regulatory Commission put forward seven new deals to improve the operation of the capital market. One of them is forcing the listed companies to dividend. The measures are following:the company which is offering public stock initially, in the company prospectus rewards program, dividend policy and the plan must be elaborated, and all of them should be prompt as the major matters, to improve the transparency of dividend items. What’s more, some weatern scholars have researched on the governance of cash dividend show that cash dividends in reducing shareholders and operators, the big shareholders and small shareholders agent can utilize the governance effect of corresponding conflict. Because the development stages of our country securities market is different from the west, and the complexity of the Chinese stock market, the lack of scientific dividend distribution theory as guidance, these are one of the important reasons for un-standard dividend distribution of our countries listed companies.In this paper, based on market environment for the development of the company and the status of the theoretical research, using 2010-2012 A-share listed companies as samples, and after excluding some abnormal samples, under the condition of different corporate governance, using theoretical analysis and empirical test to sample points discuss the correlation between cash dividends and the corporate value. The study found that in the five different corporate governance modes which are equity concentration, national class as the first shareholder, high management ownership, the big board size and the high proportion of independent directors, the relationship between cash dividend policy and the corporate value is different.Therefore, the article research from the perspective of corporate governance found the relationship between cash dividend policy and the corporate value, it is favorable for enterprises perfect the corporate governance, and choose the appropriate cash dividend policy according to their own governance model. What’s more, the research on the positive correlation between cash dividend policy and the corporate value provide theoretical support and empirical basis for regulators to formulate related rules and regulations on cash dividend policy.