Research On The Impact Of Cash Dividend Policy On Inefficient Investment Behavior Of Listed Companies

Effective investment can guarantee the steady growth of the company and promote the sustained and healthy development of the national economy.However,inefficient investment behavior is prevalent in Chinese listed companies,which will reduce the value of the company,and it is difficult to promote social and economic growth,so it is imperative to reduce inefficient investment behavior.According to the theory of dividend agency cost and dividend signal,cash dividend is helpful to reduce agency cost,alleviate adverse selection and reduce inefficient investment behavior.However,from the life cycle perspective,the company's operating conditions,profitability and other characteristics at different stages of development are different,and the degree of financing constraints and agency conflicts are also different.This will make the company implement different dividend policies in different life cycles,and thus have different impacts on the company's investment behavior.Furthermore,this paper also pays attention to the differentiated cash dividend policy proposed by the SFC on November 30,2013,which stipulates the dividend distribution ratio between the growing and mature companies,which will restrict the company's autonomy in making cash dividend policy,and then produce di fferent governance effects on inefficient investment behavior.Therefore,this paper studies the impact of cash dividend policy on inefficient investment behavior in different life cycles,and analyses the governance effect of differentiated cash dividend policy on inefficient investment behavior in order to reduce inefficient investment behavior.This paper explores the relevant research theories in detail,analyses whether dividend policy has the characteristics of life cycle,and explores the change of d ividend payment rate.In addition,it makes a theoretical analysis of the impact of cash dividend policy on inefficient investment behavior in different life cycle,and also analyses the governance effect of differentiated cash dividend policy on inefficient investment behavior.Based on the above analysis,it puts forward research suppose.In empirical analysis,this paper makes a regression analysis of the data of A-share listed companies in Shanghai and Shenzhen from 2008 to 2017.The results show that t he cash dividend policy of listed companies in China has the characteristics of life cycle,and the dividend payment rate of mature companies is higher than that of growing and declining companies.High cash dividend distribution ratio of growing and decli ning companies will aggravate the underinvestment.It is necessary to study the impact of cash dividend policy on inefficient investment behavior from the perspective of life cycle.Under the governance mechanism of differentiated cash dividend policy,although the dividend payment rate of companies with major capital expenditure arrangements in growth period has been reduced,it still can not be alleviated.This kind of company's underinvestment behavior can be effectively restrained by increasing the dividend payment rate of mature companies.It can be seen that the differentiated cash dividend policy has certain governance effect but also has limitations.Based on the above findings,this paper puts forward suggestions to reduce inefficient investment fro m three perspectives: optimizing cash dividend policy within the company,improving differentiated cash dividend policy and strengthening penalties.