A Research On The Relationship Between Cash Dividend Distribution And Enterprise Value Of Chinese Start-up Board Company Based On The Theory Of Enterprise Life Cycle

The dividend policy is one of the important financial policies of the listed companies.The correct choice of cash dividend policy has an important impact on the promotion of enterprise value.According to the related research of the theory of enterprise life cycle,different cash dividend policies will be applied to different enterprises at different stages of life.Previous studies have focused on whether the life cycle of enterprises will affect corporate cash dividend decisions,but there is few researches on the value of enterprises based on this theory.Based on the theory of enterprise life cycle,this paper empirically tests the relationship between cash dividend distribution and corporate value from two aspects: short term and long term.This paper has reviewed the relevant theoretical research of the relationship between cash dividend policy and enterprise value,and makes the collation and analysis of domestic and foreign representative achievements,and constructs the theoretical basis.Then,it takes stock price as a proxy variable of short-term enterprise value,and it uses event study method to study the correlation between short-term corporate value and cash dividend announcement.After that,it continues to use the idea of regression,to study the correlation between long-term corporate value and cash dividend distribution willingness and distribution strength by using multiple linear regression model respectively,and makes comparison.The main conclusions of this paper are as follows:First,from the short-term dividend announcement effect,if the enterprise is in the growth stage,the short-term value of the enterprise is negatively correlated with the cash dividend payment while if the enterprise is in the mature stage or the recession stage,the short-term value of the enterprise is positively correlated with the cash dividend payment.Second,from the two regression results in the long term,to those enterprises in the growth stage,the intensity of dividend distribution has a significant negative impact on the long-term enterprise value.And to those enterprises in the mature stage,the decision of whether to distribute dividends and the intensity of dividends have a significant positive impact on the long-term enterprise value.To those enterprises in the recession stage,the decision of whether to distribute dividends and the intensity of dividends have a significant positive impact on the long-term enterprise value.Third,from the two regression results in the long term,in addition to the enterprise value,factors like income,earnings per share,growth ability,debt level and equity concentration,will have different influence to the cash dividend distribution of the willingness to distribute cash dividends and the intensity of dividends.This paper holds that the enterprise life cycle has an important directive function for both listed companies and investors.A listed corporation should make a reasonable dividend distribution policy based on its actual situation and refer to its life cycle.Investors should make a more accurate prediction based on the length of their investment cycle and refer to the life cycle of the invested enterprises.