The Impact Of Cash Dividends On Enterprise Value In Perspective Of Life Cycle

With the continuous development of economic globalization,China's manufacturing industry plays a great role as a pillar industry in the national economy.The proposal of "Made in China 2025" shows that our country should change from manufacturing power to manufacturing powerhouse,from "Made in China" to "Chinese intellectual creation",and in the process of its development,it needs to improve corporate governance,and improve the efficiency of operation and financial activities,and promote the continuous improvement of enterprise value.The modern corporate governance system mainly includes investment decision-making,financing decision-making and dividend policy,in which the dividend policy refers to the choice between the company's internal retention and the distribution of shareholders ' profit after-tax.The appropriate dividend policy helps to increase the value of the enterprise,and it has always been the focus of theoretical and practical circles.On the relationship between dividend policy and enterprise value,Modigliani and Miller put forward the dividend independent theory,and then scholars have put forward “A Bird In Hand” theory,Agency Cost theory.In 2006,DeAngelo proposed the theory of Dividend Life Cycle,which provided a new idea for the research of dividend policy.For the manufacturing listed companies in different life cycle stages,whether their cash dividend policy has an impact on the value of the enterprise,what is the nature of this influence,is it statistically significant? With these problems,this paper studies the effect of cash dividend policy on enterprise value from the perspective of life cycle.Firstly,this paper summarizes the relevant data of dividend policy and enterprise value relationship from the perspective of enterprise life cycle,and carries on the literature review.Secondly,the thesis analyzes the concept and interrelation of dividend policy,enterprise value and Enterprise life cycle.Then,the paper analyzes the influence of cash dividend policy on enterprise value in different life cycle stage.and puts forward the relevant hypothesis;Finally,taking the listed company of manufacturing industry as a sample,collecting the data of the listed company in 2015-2017,using SPSS21 to carry on the regression analysis,and verifying the hypothesis from three aspects of dividend payment intention,dividend payout rate and dividend payment stability.The results of this paper show that: the cash dividend policy of listed companies in China has different influence on the value of the enterprise in various life cycle stages,specifically:(1)In the growth period,the dividend payment intention,payout rate and stability are negatively correlated with the enterprise value.(2)In the mature period,the dividend payment intention and payout rate are positively correlated with the enterprise value,and the stability of cash dividend payment has no significant effect on enterprise value.(3)In the period of recession,the dividend payment intention and payout rate are positively correlated with enterprise value,and the stability of cash dividend payment is negatively correlated with enterprise value.