Research For Listed Company’s Diversification And Cash Dividend Policy

Cash dividend policy is an important financial policy and strategy which determines the distribution of the listed company’s surplus, after the reform of non-tradable shares in 2008, academia raised a hot wave to research cash dividend policy. As a transition economic country, china’s capital market is undeveloped and it’s legal system is imperfect, cash dividend policy will be affected by the influence of information asymmetry and agent cost, enterprise diversification of agency problem and the efficiency of internal capital market have an important impact on cash dividend policy. Corporate diversification has dual effects on cash dividend policy: On the one hand, diversified enterprises have more diversified financing channels,and they have advantages of spreading risk, as well as internal financing and others, which can reduce the information asymmetry and improve the using efficiency of funds, thus enterprises tend to distributed more cash dividend. On the other hand, diversified enterprises may bring serious agency problems, as well as the cross subsidy, rent-seeking behavior, invalid internal capital markets, enterprises tend to distributed less cash dividends. In addition, the severity level of the asymmetric information and agency conflicts will be affected by the country’s institutional environment and corporate governance level. Because of our country has imperfect institutional environment, big regional differences and low level of overall corporate governance, so the enterprise has serious agency problem, and the efficiency of internal capital market is lower, thus the institutional environment and corporate governance may in a certain degree affected diversified enterprise’s cash dividend policy.Based on asymmetric information, internal capital market and agency cost theory, we integrated use of combining qualitative and quantitative analysis, empirical and normative analysis and comparative analysis,and use all A shares data from 2003 to 2012 as the research sample, we respectively adopted the Logistic regression model and OLS regression model in the cash dividend distribution tendency and distribution levels, we discusses that the diversified how to influence the cash dividend policy, and we in-depth study of the relationship between diversification and the cash dividend policy combining the corporate governance and the marketization process, and we based on the cash dividend value has carried on the further inspection. The empirical results show that: The diversification is negatively related to the cash dividend distribution tendency and distribution levels; The improvement of corporate governance can make the negatively relationship between the diversification and the cash dividend distribution tendency and distribution levels weaker; The improvement of the marketization process can make the negatively relationship between the diversification and the cash dividend distribution tendency and distribution levels weaker; Based on the further test results show that cash dividend distribution tendency and distribution level is positively related to the corporate value, and compared with the specialized enterprise, the positive correlation between cash dividend distribution tendency and distribution level and the corporate value in enterprise diversification is stronger.This paper give us enlightenment: In terms of theory, diversification is also the important factors of the cash dividend policy. In practice, we should fully grasp the positive role of diversification enterprise’s internal capital market, such as the advantage of internal financing, optimizing the allocation of funds, and increasing the service efficiency of funds. We should strengthen corporate governance, and should optimize enterprise organizational structure and ownership structure, thus relieve the agent conflict of the enterprise and improve enterprise’s value. We also ought to improve laws and regulations about cash dividend policies,thus strengthen the protection of creditors and minority shareholders.