The Empirical Study Of Semi-mandatory Dividend Policy On The Value Of Electric Power Listed Company

With the expanding of the capital market,more and more companies are choosing to be listed publicly.In doing so,many of these publicly listed companies chase a value maximization while at the same time,gradually weakening dividends.This phenomenon is known as "Noun Dividends".In order to counteract this growing phenomenon of low-level payouts or even a complete lack of dividend or bonus payments of listed companies,the securities and futures commission issued a mandatory divided policy which is under state control.Dividend policy is a profit distribution decisions of listed company.As the dividend distribution directly affects the future development of the enterprise.The electric power industry,as a pillar industry of the country,is facing deepening reform of the power market in the future,it playing an important role in the future capital market.Focusing on the electric power industry,whether the semi-mandatory dividend policy promote the value of listed companies in this industrial sector and aid electric power listed companies in fulfilling their social responsibility or not attract scholar's concentration.This article starts from the background of Semi-mandatory Dividend Policy and analyzes the theoretical basis,by reference to classical theory and the mainstream view,combining the method of literature investigation,on one hand through a mandatory dividends policy analysis and on the other through the study of the relationship to the enterprise value.The review of two key literature sources,describing the system of dividend policy on the basis of enterprise value assessment theory and the characterization of listed companies,allows this paper to choose a sample size of 32 companies.For these 32 companies,10 years' worth of tracking research and data is available for the years 2005-2014.The following data is the focus of the analysis of this paper,investigating the semi-mandatory dividend policy implementation through two important indexes:enterprise free cash flow and cash dividend.Using economic value added system to measure the enterprise value of listed companies in electric power industry,at the same time,combining with the domestic traditional methods ROE,ROA to judgment the value of listed companies in electric power industry,then summarizes the evaluation value of the common characteristics of listed companies in the power industry.By the comparison and analysis on the dividend policy and value of electric power industry listed companies before and after the implementation of the semi-mandatory dividend policy,this article put forward the reasonable hypothesis and inspection,using the software Statal4.1 regression analysis.Through the analysis,this article concludes,that the semi-mandatory divided policy has a significant and positive effect on the value of listed companies in the electric power industry.This study also passes the robustness inspection of the cycle volatility index Tobin's Q.Through the comparison and analysis before and after the implementation of the semi-mandatory dividend policy,it becomes clear that this policy enhances the correlation between free cash flow?dividend and the value of the electric power industry listed company.The correlation between free cash flow and the value of the electric power industry listed company turn direction and become much significant.And the degree of the correlation between dividend and the value of the electric power industry listed company increased a little.This article also finds,that after the implementation of the semi-mandatory dividend policy,the value of the electric power industry listed company obviously improved.The study shows that the semi-mandatory dividend policy has a positive effect in promoting the value of listed companies in electric power industry.