A Study On Corporate Governance,Cash Dividends And Over-investment Behavior

With the continuous updating and iteration and innovation of China's information technology,the Internet economy has maintained rapid growth,and the Internet industry is constantly standardizing and improving.Internet giants,from the initial "BATJ"(Alibaba,Tencent,Baidu,Jingdong),to the current "TMD"(Today's headlines,Meituan,Didi)have been listed successfully,Internet companies listed financing has become a trend.At the same time,along with the implementation of the national "Internet +" policy,there have been more and more Internet enterprise IPOs,private placements,mergers and acquisitions and other cases in China's capital market.In the capital market,whether it is an institutional investor or an individual investor,to make a successful investment,you must first have a correct valuation of the target company.It is not scientific to use traditional methods to value Internet companies.First of all,the value of Internet companies is greatly affected by their technological content.Secondly,the light assets of the Internet industry are mostly intangible assets,and the uncertainty is also large.The above two points make the valuation of the Internet industry more difficult.At present,the more popular valuation models have different applicability to the valuation of the Internet industry due to different design principles and parameters.The main writing idea of this paper is to select the more commonly used EVA valuation model and DCF valuation model,and take the industryrepresentative Baidu as an example for comparative analysis to explore the valuation model more suitable for Internet companies.This paper first builds the EVA model and the DCF model,and details the parameter setting,formula construction and valuation process of the two models.After using the case analysis method,Baidu Company was taken as an example to conduct a comprehensive analysis of all aspects of Baidu Company,using open financial data to calculate Baidu's free cash flow and economic value added in the future,and bring in two good builds.Models are evaluated.Then compare with the average market value of Baidu in the last month of 2017 to get the results of the differentiation and analyze the reasons.After comparative analysis,it is concluded that the EVA model is more effective than the DCF model compared to Baidu's valuation.