Empirical Study On The Impact Of Scale Expansion Of State-Owned Enterprises On Business Performance Under The Background Of Profit Turning Over

In the past twenty years,the state-owned enterprises have made important contributions to the rapid development of our market economy.Meanwhile,under the joint action of good economic environment and national support policy,our state-owned enterprises have also expanded rapidly,and the total assets have been climbing to a new peak.Though the scale expansion strategy is effective,the performance of state-owned enterprises has always been criticized by people.The dividend payment policy is essentially another form of distributing cash dividends by the state-owned enterprises,the state classifiedly collects the profit after tax of the state-owned enterprises according to the fixed proportion of the accounting earnings.According to the western dividend agency theory,reasonable proportion of cash dividend can reduce the free cash flow within the enterprise,to a certain extent compressing the space that managers seek personal profits through excessive investment,reducing the agency cost of enterprises,improving the company’s investment and the expansion of scale efficiency.However,the dividend paying policy of the state-owned enterprises is not perfect,so it is of great practical significance to verify its regulatory effect on the benefits of scale expansion.Based on the background of that the state continuously promotes state-owned enterprises to hand over their after-tax profits,this paper theoretically analyzes the causes of the scale expansion of state-owned enterprises and the impact on business performance,and discusses the moderating effect of dividend payment policy on the scale expansion of state-owned enterprises.On this basis,selecting 2007-2016 years data of state-owned enterprises in the iron and steel industry as examples,through the hierarchical regression model to test the correlation between the expansion of the scale and performance under the background of profit turning over of state-owned enterprises,result shows that the expansion of the scale of state-owned enterprises really promoted business growth,but the effect was relatively limited,and the dividends policy effect is not significant.Then,according to the results of the analysis,we put forward some suggestions to improve the performance of the state-owned enterprises by improving the dividend policy.