| With the rapid development of world economy, the environment faced by enterprises becomes more complicated. After the financial crisis, financial flexibility has aroused the attention of the enterprise and has gradually become the key factor in making financial decisions by the enterprise management. Financial flexibility is an ability of enterprises to effectively mobilize the amount and time of cash flow, and then grasp the opportunity unexpected or resist risks. There is a positive meaning for enterprises to maintain a certain level of financial flexibility to resist risks and enhance corporate value. As one of the important financial decisions of the enterprise, dividend policy is not only related to the orderly development of the enterprise, but also has important significance to the healthy operation of the capital market. China Securities Regulatory Commission has introduced a number of policies called "semi-mandatory dividend policy" in order to establish the consciousness of cash dividends of listed companies, standardize the cash dividend behavior, and optimize the return on investment system. The promulgation of the policy also indicates the importance of dividend distribution. Under the background of such a system, this paper studies on the relationship between financial flexibility and cash dividend, has important practical significance.The purpose of this study is to explore the relationship between the financial flexibility and the level of cash dividend of listed companies, and further studying the effect of China’s institutional background on this relationship. First introduces the background and significance of the study, then from the three aspects of the financial flexibility, dividend policy and the correlation between them to sort out and sum up the domestic and foreign literature, for the follow-up study of this paper do a good theoretical basis. And then defines the definition of financial flexibility, introduces the reasons and the main contents of China’s semi-mandatory dividend policy, and illustrates the three access methods of financial flexibility: cash, liability, equity. And make a brief introduction and comparison of the existing measurement methods of financial flexibility then the paper analyzes the financial flexibility and cash dividends in theory, and put forward the hypothesis combined with institutional background. Through verify the hypothesis by building model, selecting the variables, using descriptive and multiple regression analysis.Finally put forward policies and suggestions.This paper uses the data of A-share listed corporation in stocked markets of Shanghai and Shenzhen over the period 2011 to 2013 as sample to make the empirical analysis. The analysis results indicate that the financial flexibility reserve is positively related to the level of cash dividends in the listing corporation, and the system background of s semi-mandatory dividend policy is strengthened the relation. While the marginal value of financial flexibility has an inhibitory effect on the level of cash dividends, the policy background of our country has no obvious effect on this relationship. Based on this conclusion, this paper puts forward the following policies and suggestions: first, enterprises should establish a sense of the financial flexibility to actively maintain appropriate financial flexibility reserve; second, regulatory authorities develop cash dividend policy more scientific and guide the behavior of cash dividends correctly.This paper expands the research on the cash dividend policy of listed corporation from the perspective of financial flexibility, combined with the impact of semi-mandatory dividend policy on their relationship. The conclusion can help enterprises realize the importance of maintaining an appropriate level of financial flexibility, provide some reference for the enterprise management when making cash dividend policy, as well as to provide suggestions for the regulatory authorities to amend the policy. |
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