Cash Dividend,Internal Control And Enterprise Innovation

At present,China has shifted to a stage of high-quality development.In the background of the era of knowledge economy,enterprises are facing new opportunities and challenges,prompting them to cultivate new development advantages by adhering to innovative research and development.As the main body of Chinese financial market,listed company is an important carrier of innovation activities.The innovation ability of listed company determines whether it can survive in complex and changeable financial market.Therefore,in order to change the current situation that China’s innovation ability does not meet the requirements of high-quality development,enterprises should constantly improve their own research and development level,so as to make a qualitative leap.In addition,cash dividends,as one of the common dividend methods,represent the short-term dividends received by shareholders of listed companies,while corporate innovation represents whether an enterprise can maintain long-term social competitiveness to bring long-term returns to shareholders.Therefore,cash dividend payment and innovation activities are essentially consistent in terms of returns to shareholders.However,in the actual operation process,the funds of enterprises are limited,and the allocation of more cash dividends means that the funds invested in innovation activities will be crowded out,so there is a contradiction between cash dividends and enterprise innovation.By reading and sorting out the existing research results at home and abroad,this paper takes the principal-agent theory,enterprise risk management,benefit delivery hypothesis and free cash flow hypothesis as the theoretical basis of this paper to explore the impact of cash dividends on innovation and the mechanism and path of action.In addition,this paper uses the data of all Chinese A-share listed companies from 2012 to 2021 as research samples to empirically study the relationship between cash dividends and corporate innovation.At the same time,combined with the role of internal control in the relationship between the two,in-depth exploration of the adjustment of internal control.The paper finds:(1)There is a significant negative correlation between cash dividends and enterprise innovation,which is manifested in the fact that the increase of the cash dividend ratio of enterprises can inhibit the investment and output of enterprise innovation;(2)Internal controls can weaken the inhibitory effect of cash dividends on the innovation inputs and outputs of firms;(3)Economic policy uncertainty can strengthen the negative impact of cash dividends on corporate innovation inputs and outputs.The innovation of this paper is mainly reflected in the fact that most of the existing literature is to explore the impact of cash dividends on enterprise innovation,and there is a relative lack of research on the influencing factors between the two.This article attempts to start with the regulating role of internal control,add the regulating variable of internal control,and explore whether the regulating effect of "cash dividend-internal control-enterprise innovation" is effective.Moreover,the factors that can affect the relationship between cash dividends and enterprise innovation are further explored,and the existing research on other factors affecting enterprise innovation is relatively lacking,and this paper attempts to create a multi-perspective analysis model for other factors influencing the relationship between cash dividends and firm innovation,and on this basis,verifies the correlation effect through empirical tests and other scientific methods.