Study on the Relationship between the Dividend Policy and the Value of Chinese Public Companies
|School||Harbin Institute of Technology|
|Keywords||enterprise value dividend policy cash dividend stock dividend ownership concentration|
Dividend Policy plays an important role in decision-making in the joint-stock company, therefore receiving attentions from various aspects. The China’s securities market has a short history with speculation as its character. The study of the impact of dividend policy on enterprise value, which makes help to the dividend distribution making, improve the rational investment and promote the healthy development of the securities market.Based on the foreign and domestic theoretical research, this article analyses the influence on enterprise value from the aspects of divide payment or not, dividend level, dividend means, dividend stability and the intentions of dividend distribution intentions, combining the resent condition of dividend distribution of the listed companies. Then this paper selects the companies listed before 2005, using the data from 2005 to 2009 as the sample, do the research of the relationship between the enterprise value and the dividend policy by means of empirical analysis.The empirical results show that paying dividends can promote the enterprise value. The value of enterprise is correlated positively with the relative dividend level, and a negative correlation with the absolute dividend level. The combination of cash dividend and stock dividend has a higher influence to the enterprise value than the only cash dividend. And the stock dividend has no significant effect on the enterprise value. Keeping a stable dividend policy helps to improve the value of enterprises. For over-ability companies and financing-payout companies, the enterprises’value is correlated positively with the per cash dividend. Finally, the paper listed the suggestions from the aspects of choosing the dividend policy in order to improve enterprise’s value and selecting investment for investors to gain most accrual.