The Impact Of China's Listed Companies' Cash Dividend Policy On Corporate Value

Dividend policy is an important financial management activity for listed companies in the course of business.For a long time,the dividend policy has always been a hot issue for scholars at home and abroad,and it is also the focus of information that investors are very concerned about.Appropriate cash dividends are available to help a company's long-term development.Companies need to adopt a suitable cash dividend policy based on their life cycle.Previous studies have focused on how different life cycle characteristics affect a company's cash dividend policy,but based on the life cycle perspective,there are relatively few studies focused on the impact of cash dividends on corporate value.Therefore,this paper will study how a cash dividend policy will affect the value of the listed company in different life cycle stages.Firstly,this paper combs the classic dividend policy theory,clarifies the connotation of enterprise value,and combs and summarizes the important viewpoints of domestic and foreign scholars from the two aspects of whether cash dividends affect enterprise value and life cycle theory.Secondly,this paper divides the life cycle stage of the enterprise by adopting cash flow combination method.Generally speaking,listed companies have basically passed the initial stage.Therefore,this paper divides the life cycle of an enterprise into the growth period,maturity period and recession period,and analyzes how the cash dividend policy will impact the value of an enterprise in different life cycle stages,following by the research hypothesis.Finally,by using A-share companies listed in Shanghai and Shenzhen stock markets as research samples,collecting data from 2011 to 2017,and constructing multiple linear regression models,the hypothesis is verified from cash dividends paying willingness aspect and cash dividends paying effort aspect.The research results of this paper show that the cash dividend policy of listed companies in China has different impacts on the value of enterprises in different life cycle stages.Specifically:(1)In the growth period,the willingness to pay cash dividends and the distribution of cash dividends both have a negative impact on corporate value.(2)In the mature period,the willingness to pay cash dividends and the distribution of cash dividends have a positive impact on corporate value.(3)In the recession period,the willingness to pay cash dividends and the distribution of cash dividends have a negative impact on corporate value.