The Impact Of Dividend Policy On Enterprise Value

The establishment of China's capital market is relatively late,and the companies in our country have greater randomness in formulating the dividend policy,and the regulatory system needs to be further improved.In related research,the current theoretical research on dividend policy of Chinese listed companies mostly refers to foreign studies,mainly focusing on theoretical discussion,but lacks systematic measurement research.The way and degree of the influence of dividend policy on the value of the company can provide sufficient basis for the managers,regulators and investors.With the rapid development of China's capital market,the impact of dividend policy on company value is more and more concerned by the market,and the research of related issues is more important.This paper first introduces the concept and definition of enterprise value.Enterprise value and its overall assets are two different concepts.The correct definition of the definition of enterprise value is of great significance for theoretical research and practical work.Then this paper introduces the related concepts of dividend policy.Dividend policy refers to a company's policy decision on matters related to dividends.It can be divided into four different types according to the level of payment.Then this paper introduces the relevant theory of dividend policy's impact on enterprise value,including the MM theorem,the theory of agency cost,the theory of the elimination of uncertainty,the theory of tax rate preference,the theory of signal transmission and the theory of behavior.Finally,through the analysis of the panel data of Listed Companies in China,the following conclusions and results are obtained:the company's dividend payment level will have a positive impact on the company value.In the case of the same other conditions,the higher the dividend payment level,the higher the enterprise value;the lower the dividend payment level of the company.The lower the corporate value;the rate of change in a company's dividend payment level also has an impact on the company's value;the higher the level of a company's dividend payment,the higher the value of the firm in the market,and vice versa.