Executive Incentive,Corporate Growth And Cash Dividend Policy

Cash dividend policy is related to the gains and losses of shareholders' equity and can affect the long-term development of the company.It is the core activity of modern corporate finance.Cash dividend policy has reversed the dividend "anomaly" that listed companies "put more emphasis on financing than returns",and played an important role in reducing agency costs,improving corporate governance and protecting investors' legitimate earnings.The China Securities Regulatory Commission has repeatedly required listed companies to pay cash dividends under the policy of "guidance" and "semi-mandatory",but the "regulatory paradox" in the implementation of the policy has attracted more and more academic attention.From the perspective of rational managers,the separation of management and ownership between senior executives and shareholders leads to the conflict of interests between them and the formation of principal-agent costs.When formulating cash dividend policies,senior executives will make use of their information advantages to formulate policies in favor of their own interests,which will often harm the interests of shareholders.In order to safeguard their own interests,on the one hand,shareholders will try to restrict the self-interested behavior of senior executives by implementing compensation incentives.On the other hand,in order to make senior executives consistent with their own interests,shareholders will also allocate certain equity to senior executives,so that senior executives can improve the value of the company and achieve a win-win situation with shareholders.China's gem listed companies are mostly small and medium-sized enterprises in different growth stages,and their company size,profitability,cash flow,etc.,are also different,which will lead to their development of cash dividend policy will be different.In order to explore how to develop a reasonable and effective cash dividend policy for gem listed companies and how the cash dividend policy will be affected by the incentives of senior executives and the growth of the company.This article selects 2013-2017,the empirical evidence of the gem listed companies in our country as the research sample,paid in cash dividend payment willingness and cash dividend level as the dependent variable,with executive equity incentive and executive compensation incentive,growth as the independent variables,combined with profitability,solvency,cash flow,company size,such as control variable,the related data are descriptive statistics,correlation analysis and binary logistic regression and multivariate linear regression,finally replace robustness inspection related variables,which analysis results are obtained.The study found that: executive incentive is positively correlated with cash dividend payment willingness and cash dividend payment level of gem listed companies;Corporate growth is negatively correlated with cash dividend payment willingness of gem listed companies and positively correlated with payment level.With the growth of gem listed companies,the incentive of executives and the growth of companies have a significant effect on the willingness to pay cash dividends and the level of cash dividends.