Research On The Impact Of Cash Dividends Of China's A-Share Listed Companies On Over-Investment

Investment plays an important role in China's economic development.The investment of listed companies is also the main driving force for stable health and even high-speed development.The existence of‘broad irrigation'investment has made the investment efficiency of listed companies in China low,and the problem of excessive investment is not uncommon.After the important stage of China's development into a new normal,the problem of over-investment has become an urgent problem that affects China's economic development and even the development of listed companies.The amount of dividends distributed is the game between the retention of internal profits of listed companies and the feedback of investors.This is related to the important rights and interests of shareholders and plays an important role in the development of listed companies.How does cash dividends affect the company's excessive investment? What is the relationship between the state-owned nature of the company and cash dividends? This paper has studied the above issues.This paper first reviews the relevant literature on the impact of cash dividends on over-investment,and forms the theoretical basis of the paper: the theory of dividend agency.The theory points out that the payment of cash dividends will reduce the company's free cash flow,and then introduce new fund holders,strengthen supervision of the company,and reduce excessive investment.This paper takes the financial data of A-share listed companies from 2013 to 2017 as a sample for empirical analysis and calculates the expected investment level of listed companies in China.If the difference between the actual investment of the company and the expected investment is greater than 0,excessive investment will occur.The over-investment of the company as an explanatory variable,the company's free cash flow,whether the cash dividend payment,the cash dividend payment rate and the nature of the company as explanatory variables,the company's asset size,listing period,company investment opportunities as a control variable for empirical research.Empirical research has found that the more cash flow the company has,the more serious the company's excessive investment;the company's cash dividends will reduce the company's free cash flow,thereby inhibiting excessive investment;the state-owned company's investment is not only related to free cash flow,but also to the completion of society.The policy objectives of responsibility are related.Cash dividends can reduce the company's free cash flow and inhibit excessive investment,while over-investment in state-owned enterprises is not only related to free cash flow,but the effect of cash dividends on the excessive investment of state-owned companies is weakened.The case of the failure of diversified investment by Zhongke Cloud Network shows that listed companies should analyze the company's cash flow situation when expanding the business map,and then enter a new industry after conducting various research.When investing in a company,it should not blindly follow the trend.It should be evaluated in conjunction with the company's cash flow situation to improve the company's investment efficiency so as not to end up miserably.After China's economy has entered a new stage,the development of listed companies in China is also a stage where opportunities and challenges coexist.How to improve the company's investment efficiency,from the "big flood irrigation" to the "fixed investment" transformation requires government regulatory agencies,listing The company and investors work together.From the perspective of government regulatory agencies,regulators should formulate more specific differentiated dividend standards and conduct strict audits on the use of funds raised by listed companies.For listed companies,they should improve the governance of listed companies and continue to promote equity reform and reform.A monopoly situation,formulate a dividend policy suitable for the company's long-term stable development;strengthen investor education,improve the law of investor protection,convey the concept of correct value investment to investors,and curb the speculation of stock market.