Digital Finance And Corporate Cash Dividend Distribution Level

During the "Fourteenth Five-Year Plan" period,China has entered a new phase of digital growth.The "14th Five-Year Plan" has also put forward greater expectations for the growth of digital finance in China.As a result of the organic integration of conventional finance and new generation technology,digital finance,with its "low cost,fast speed and wide coverage",provides an essential mechanism to solve the existing problems in the financial market,and drives the high grade growth of the economy.The report stressed the necessity of " building a new growth structure and striving to facilitate high-quality growth",and the booming growth of digital finance is crucial to realizing this target.As an important part of enterprises’ profit sharing,dividend arrangement is one of the most significant financial policies,which is of widespread importance to all parties in the society.A listed corporation’s cash dividend policy can have an implication for stakeholders,the business itself and the stock market.Consequently,when developing a dividend policy,the streamlining and rationalization of the policy needs to be taken into careful account so as not to upset the investors’ faith and anticipation in the future growth of the company and also affect the original asset build-up of the business,thus influencing the business decision and investment financing decision of the company.The two primary topics of this paper are digital finance and corporate cash dividend distribution.Firstly,the literature related to digital finance and cash dividend distribution is sorted out,and the mechanism of the impact of digital finance on the level of corporate cash dividend distribution is empirically investigated with respect to information asymmetry theory,preferential financing theory,signaling theory and principal-agent theory.Ultimately,it concludes that the development of digital finance can enhance the cash dividend distribution level of enterprises.The financing restrictions enterprises face can be alleviated by digital finance,thus augmenting the amount of cash dividend distribution.The level of cash dividend distribution of enterprises can be improved by digital finance,which can also reduce agency costs.The degree to which digital finance enhances the cash dividend allotment of businesses will be contingent upon the character of their property rights,the site and the stage of their life cycle.The cash dividend distribution level of non-state enterprises has been significantly enhanced by digital finance,in comparison to that of state-owned enterprises.In the eastern region,the introduction of digital finance to the dividend distribution of businesses is notably less than in the central and western regions.In the growth period,digital finance has seen the greatest enhancement in the dividend distribution of enterprises,while during the recession period,it has seen the least,and in the mature period,it has seen a moderate rise.The significance of this paper is that it examines the effect of digital finance on corporate cash dividend distribution.Previous studies on the effect of digital finance on micro-enterprises have focused more on its effect on financing restrictions and corporate creativity.Few literatures have combined digital finance with corporate dividend distribution behavior to investigate the impact of digital finance on the level of corporate cash dividend distribution.The economic research results of digital finance are broadened in this paper,providing a thorough comprehension of the economic advantages of digital finance and aiding in the formation and enhancement of pertinent policies of digital finance.A novel outlook on the elements influencing the cash dividend allotment of businesses is presented,augmenting and enhancing the existing literature,and enlightening enterprise directors to devise cash dividend regulations and augment the focus on the dangers connected to digital finance.