Study On The Effectiveness Of Differentiated Cash Dividend Policy

In recent years,the rapid development of China's capital market,market immaturity,instability and other issues continue to highlight.In order to maintain the stable and healthy development of our market,enhance investors' confidence of long-term investment and regulate market behavior,the China Securities Regulatory Commission(CSRC)has continuously issued a series of policies to restrict the dividend-sharing behavior of listed companies.The result of them has undergone a process from "soft" constraints to "hard" constraints,and the policies has constantly being revised and strengthened according to the actual situation.Domestic scholars' research on dividend policy mostly focus on the semi-compulsory dividend distribution system which issued and implemented before the differentiated cash dividend policy.The research results show that the dividend distribution situation of municipal companies has changed,but in some well-being and mature companies which under regulatory pressure,dividends are still not paid to investors,and the implementation effect needs to be further improved.The differentiated cash dividend policy proposed in 2013 is no longer a one-sided emphasis on increasing the proportion of cash dividends,but the combination the cash dividend ratio with the company's specific situation,and the implementation effect is also highly anticipated.is also expected.By reading a large amount of literature,mainly about the life cycle theory of dividend policy and the related research of China's semi-mandatory dividend policy,we find the entry point of research.After the implementation of the differentiated advanced dividend policy,there are few studies on it,and it is related to the life cycle of the enterprise,so the effectiveness of the differentiated cash dividend policy is studied from the perspective of the enterprise life cycle.On the basis of summarizing the domestic and foreign scholars' research on the life cycle theory of dividend policy,the life cycle of the enterprise is quantified according to the ratio of retained earnings to stockholder equity(RE/TE).The larger the value,the more likely it is at the maturity stage;the smaller the value,the more likely it is to be in the growth phase.In the case of descriptive statistics,on the one hand,the proportion of companies that pay cash dividends and paying ratio of the cash dividends are used to examine the overall cash dividends condition of listed companies;on the other hand,the listed companies are divided into five groups according to the ratio of retained earnings to stockholder equity(RE/TE),for different groups to examine the cash dividends conditions of listed companies with different life cycles.Through the empirical analysis model “Logit “ and “Tobit”,the objects are the cash dividend willingness and cash dividend level of the listed companies in different life cycle and developmental stages,before and after the implementation of the differentiated cash dividend policy.The results of statistical analysis show that the cash dividend willingness is in line with the life cycle theory,and there is a significant improvement after the implementation of the differentiated cash dividend policy;however,the cash dividend level does not meet the life cycle theory,and there is no obvious improvement after the implementation of the policy.By comparing and analyzing the changes of coefficient and significance befor e and after the implementation of the policy,the results show that after the implementation of the differentiated cash dividend policy,it has a significant effect on increasing the cash dividend willingness of listed companies with low growth and no major capital arrangements at maturation phase;however,the effect of increasing the dividend level is not significant.On the contrary,it reduces the cash dividend willingness and cash dividend level of listed companies with high growth period and significant capital arrangements.Compared with the existing research results in China,there are some insights in the following aspects:First,it enriches the research on differentiated cash dividend policy.Based on the life cycle perspective,it studies the impact of differentiated cash dividend policy on listed companies with different life cycles.Second,through the comparative analysis of the research results,combined with the theory and China's specific national conditions,put forward feasible suggestions for improvement.There are some shortcomings in the research: the lack of depth and breadth of theoretical research,the impact of cash dividend policy on the continuity and stability of cash dividends is not comprehensive and in-depth.