Company Growth ?Venture Capital Intervention And Cash Dividends

Cash dividends are a form of dividend distribution,also known as cash dividends.The level of cash dividends is closely related to the interests of shareholders,and is also an important decision of the company,which has a significant impact on the long-term development of the company.When the company is in a period of rapid growth,it has great development opportunities but is suffering from financing difficulties.It may face an important choice to invest capital or inject the company to help it grow or meet the shareholders' demand for dividends.In the face of the need for capital investment in growth,and due to the existence of information asymmetry,there are differences in internal and external financing costs.The management of such companies usually chooses internal financing methods,that is,using retained earnings financing,which in turn affects the level of cash dividends.Therefore,cash dividend decisions are crucial for growth companies.In addition,in order to support the development of small and medium-sized innovative growth enterprises,the SME board was established in May 2004.The establishment of this sector has increased the financing sources of enterprises and effectively improved the financing restrictions.At the same time,the venture capital industry has also developed.With the help of venture capital,the small and medium-sized enterprises are also listed.The establishment of the GEM in 2009 will further promote the rapid development of the venture capital industry,and the entry and exit system of venture capital will be more sound.After the establishment of the SME and the GEM board,it has not only been closely watched by the outside world,but also a large number of investors and financiers have participated in it.The venture capital industry has played a vital role in the growth of small and medium-sized enterprises.Venture capital can not only solve the problem of insufficient funds of the invested enterprises,but also participate in the board of directors,as a member of the board of directors,it pays attention to the development of the company,makes recommendations on the operation and management activities of the company,and participates in and intervenes in important investment decisions of the company.Does a venture capital institution that plays such an important role have an impact on the cash dividend level of a growth company?Scholars have less research on this aspect.This paper starts from the perspective of the company's growth,and studies theimpact of the company's growth on the cash dividend level and the impact of venture capital intervention on the company's growth and cash dividends.After using the literature analysis method to summarize the main reference documents of dividend policy and venture capital,the paper theoretical analyzes the impact of the company's growth on the cash dividend level,the impact of venture capital participation on the relationship between growth and cash dividends,and the impact of shareholding ratio on the relationship between growth and cash dividends,the paper puts forward three research hypotheses,and selects the SME and GEM board listed companies from 2012 to 2017 as research samples,using quantitative analysis and empirical analysis and construct a multiple linear regression model to verify the relationship between the company's growth,venture capital intervention and cash dividends.After analysis and testing,the paper draws the following conclusions:(1)Company growth and cash dividend levels are inverse relationships.That is,when the company's growth is higher,the company tends to leave the remaining income within the company to meet the growth needs,thereby reducing the amount of cash dividends;(2)The venture capital's participation will alleviate the problem of insufficient cash dividends caused by the company's growth.That is,a listed company with venture capital participation.When it needs a lot of money for development,the venture capital will help the company to raise funds and alleviate the shortage of funds,so that it can effectively improve the cash dividends caused by retaining the proceeds for reinvestment.(3)The higher the proportion of venture capitalists,the more effective it is to improve the cash dividends of growth companies.This shows that in a high-growth company,when the venture capital's shareholding ratio is higher,it will give the investor a good signal of the company's development,improve the financing environment,and thus improve the cash dividend level.This paper studies the cash dividends of GEM and SME listed companies from the perspective of growth,expands the scope of the sample,supplements the original research,And through research on the relationship between company growth,venture capital intervention and cash dividends,dividends and venture capital are linked to each other,expanding the original theory,and studying the role of venture capital in the company's listing and how it affects corporate governance,thus providing a more thorough understanding of the venture capital industry.According to the conclusions drawn from this paper,the small and medium-sized enterprises should make scientific and effective dividends from theirlong-term perspective,standardize the company's capital operation,strengthen innovation management,enhance core competencies,and introduce venture capital under appropriate circumstances to promote better development of enterprises.