Empirical Study On The Relationship Between GEM Listed Companies’ Cash Dividend And Enterprise Value

As one of the important content of the dividend policy, cash dividend has received more and more recognitions from both academy and business. The dividend distribution of listed companies should be based on the sufficient profit, for being the principal part of listed companies’profit distribution. The profit is used for dividend distribution firstly and the rest is the retained earnings of the company. So the dividend distribution policy will affect companies’development greatly, fully presenting the enterprise value. In recently years, there are plenty researches on influence factors of dividend distribution policy, however, not formed a unified conclusion, leading the "Divided Puzzle’ phenomenon. Since 21th century, several laws and regulations have been established in succession as the strengthening of focus on this policy, especially the cash dividend.From the very beginning, GEM market, as the emerging part, has experienced nearly six years. In theory, compared with the small and medium-sized board or GEM listed companies, the mainboard ones should be more inclined to the cash dividend for the lack of the power of rotated increasing share capital。But in fact, from the report of listed companies in recent years, the small and medium-sized board and GEM listed companies show more interest on cash dividend than the mainboard ones because of rapid expansion. As to cash dividend, GEM and the mainboard company have big differences, but it is not so sure what is the influence of dividend policy to the future of GEM listed companies. Based on that, the author analyzed the financial data during the year of 2009 to 2013, doing researches on the relationship between GEM listed companies’cash dividend and enterprise value and listing investors.This article respectively analyzes the present situation of the cash dividend policy in terms of overall listing Corporation and listing Corporation and their respective characteristics of gem. This paper analyzes respectively in details of the current state and features of China’s all listed companies and GEM listed companies, giving a description of the influencing factors of GEM listed companies. And empirical study on the relationship between GEM listed companies’ cash dividend and enterprise value. The paper has made the research hypotheses from four aspects respectively:whether the cash dividend has been paid, pay level, stability and incentive, designing the related variable and establishing the regression model.multiple linear regression analysis method and the final conclusion have been used on the basis of above. The last part is the conclusions and suggestions on supervision organizations, listed companies and investors. It also summarizes the shortage the research.The main conclusions of this paper are as follows:cash dividend of GEM listed companies can help improve the quality of the enterprise value; if the GEM listed companies can pay cash dividend continuously and stably, the enterprise value will be improved positively; a higher level of cash dividend does not always have a high return of enterprise value, even having the adverse impact; ultra-ability dividends payout, as one of irrational dividends payout, will not reduce the enterprise value, it has positive effect to the enterprise value; there is a positive correlation between the Enterprise’s profit and operation ability and the enterprise value, but the negative correlation between the enterprise scale and value.