Accounting Conservatism,Executive Overconfidence And Corporate Cash Dividend Policy

The dividend policy and the relationship between the manager and the investor are very important to the company's continuing operation.As a result,different companies adopt different cash dividend policies.What considerations are these policies based on and what impact will they have on stakeholders?As a hot spot,there are also some arguments about these problems.Recently,scholars have crossed the basic hypothesis of rational economic man and turned to bring behavioral economics into the scope of research from the angle of complex people.Meanwhile,accounting conservatism is accounting information.The important composition of quality is helpful for enterprises to resist risks and protect the interests of creditors,and its influence will infiltrate into executive behavior and dividend policy.At the same time,the accounting conservatism in the quality of accounting information is added to consider the dividend policy,focusing on:the relationship between the first executive overconfidence and the company's cash dividend policy;Second,the impact of accounting conservatism on the relationship between executive overconfidence and cash dividend policy.On the basis of combing the theoretical knowledge at home and abroad,this paper makes an in-depth analysis and exploration of the influence mechanism among the three.It will also explore the relationship between the three parties from the perspective of empirical evidence,and analyze the empirical data of A-share listed companies in 2012-2016.In the course of the study,we will select the agent variables of manager overconfidence and the control variables of regression model according to the special institutional background and capital market characteristics of China.The relative pay ratio of executives is used to measure the degree of overconfidence of managers.The dividend payment rate is used to indicate the level of cash dividend policy.At the same time,the C-Score value is used to select the variables used to measure the annual accounting conservatism of the company.Finally,the results are obtained by regression analysis on the relationship between the three.The conclusions are as follows:Because executives are overconfident that their company is undervalued and therefor reluctant to raise money from outside,cash dividend payments are low,and overconfidence can lead to over-investment when cash flow is sufficient.These two aspects reveal the negative correlation between executive overconfidence and cash dividend,that is,the higher the level of confidence,the higher the willingness and level of cash dividend.Accounting conservatism plays a certain role in regulating the over-investment and over-investment caused by executive overconfidence,so the moderate accounting conservatism will restrain the negative correlation between executive overconfidence and cash dividend policy.