The Influence Of The Enterprise Life Cycle On The Cash Dividend Policy

Dividend policy,as an important part of financial management,is a reasonable measure between dividend payout and investment.It is related to the long-term development of an enterprise and the owner's current income.At the same time,it is also an important reference factor for the enterprise to evaluate the feasibility of investment.As the main form of dividend distribution,cash dividend is the most concern for all stakeholders.On the one hand,it reflects the business situation and performance of the enterprise,on the other hand,it also affects the profit distribution and Refinancing Behavior of the enterprise.It has also attracted wide attention.However,due to the late start of China's capital market and the exploratory stage of government regulation,the market operators,investors and market regulators are losing checks and balances.Not even less dividends dividends stingy "dividend,the stock market of our country become the norm.To strengthen the rationality of the dividend policy of the enterprise,the government tried to formulate laws and regulations of various dividend regulation,but because of the real development status and the enterprise does not match,did not achieve the desired results: at the end of last century,China's listed companies cash dividend will is not strong,can make companies less than 1/3 cash dividend;dividend in order to improve the distribution policy of Listed Companies in China is not reasonable,in 2001 the Commission issued new regulations of cash dividend,cash dividend and corporate refinancing demand hook,which makes the distribution with the financing needs of the enterprises are forced to cash dividend,but appeared to have financial difficulties in order to achieve the enterprise financing demand refinancing needs high cash dividend problem.Influenced by the western life cycle theory,China's CSRC issued the dividend distribution document "third of the listed company's regulation directive No.--cash dividends of listed companies" in November 30,2013,requiring the enterprises to cash dividends according to their own development stages.The introduction of this policy has formulated the dividend distribution standard for listed companies at different stages of development.By analyzing the connotation and characteristics of the enterprise life cycle theory,this paper proves thatthe new dividend regulation meets the different characteristics of the development stage of the enterprise,and finally confirms the feasibility of the new dividend regulation.And the provisions of the new regulation of dividend cash dividend policy before and after the introduction of the enterprise life cycle is affected by the empirical study found that the new regulations before the implementation of the cash dividend,the dividend policy of the enterprise is not affected by the enterprise life cycle,and in the implementation of the provisions of the new dividend regulation,the distribution of corporate cash dividend to dividends in accordance with the life cycle of the.It proves that the regulations of the new dividend regulation have been effectively brought into play.This research adopted two methods.First normative analysis of the connotation of Western life cycle theory,and before and after the implementation of the new regulatory system of government regulation and the dividend policy of cash dividend distribution characteristics were analyzed.The existing literatures and theories explain the connotation of enterprise life cycle theory and the reasonableness of dividends according to the stage of enterprise life cycle,that is,enterprises need to pay dividends according to their own development stages.It also analyzes the newly issued regulations of dividend regulation in China,finds that the regulation accords with the characteristics of different stages of development of enterprises,and then promotes the rationality of regulatory provisions,and speculates the effectiveness of regulation.The empirical research,to measure the distribution of our cash dividend by cash dividend payment willingness and payment level,intended to prove the following two points: 1.before the new government regulatory policies,the willingness to pay and pay cash dividend level does not meet the characteristics of enterprise life cycle;2.new government regulatory policies,significantly influenced by characteristics the enterprise life cycle will corporate cash dividend payment and payment level.Using Stata as an analytical tool for this empirical study,Logit regression and Tobit regression were carried out respectively,and the regression results were explained and analyzed.The contribution of this study: 1.it is proved that the life cycle theory of the enterprise does not have an explanatory power to the cash dividend policy of our country before the new regulation is introduced.The situation and issued with the new regulatorypolicies after the dividend payout for comparison,found that after the new policy announced dividend regulation,corporate dividend policy with the enterprise development stage is different,namely the Commission supervision policies in line with the characteristics of the new dividend enterprise's life cycle.2.,according to the research results,we affirmed the effectiveness and feasibility of the government's policy of dividends according to its own development stage,and put forward the suggestion that the government should continue to implement and improve this regulatory policy.