Research Of The Dividend Policy Influence On Enterprise Value Of China Telecom's Operating Enterprises

The dividend policy is one of the main three contents of finance management theory and the kernel of the profit distribution for companies. On one hand, the dividend policy lasts from investing and financing policy. It is also the result of financing activities. On the other hand, an appropriate dividend policy can not only set up a good image for a company, but also inspire the investors to continuously invest in the company, which enables the company to obtain a long term and steady developing condition and opportunity. So dividend policy can transmit internal information of listed companies. It can reflect the value of the company.At first, the paper introduces the theories of the dividend policy and enterprise value, and the summary of papers all around the world. Then, it analyzes the dividend policy and feathers of the main telecom operators in and out of our country. Later, it uses the least square method positive analysis with the dividend payout and enterprise value data of financial statement. Finally, the result of research is the enterprise value of China Telecom Operators has positive relation with if they pay dividend, the amount of dividend has no remarkable effect to enterprise value, and so on. At the same time, in order to increase the enterprise value of China Telecom Operators, the paper makes some policy suggestions with dividend payout. For example, China Telecom Operators should pay dividend, and should take increase dividend policy stably, should control the growth rate, use internal fund to reduce the financing cost, and so on.