The Impact Of Cash Dividend Policy On The Performance Level Of Listed Companies

Cash dividend policy usually has a close relationship with the company's performance level,and a company who operates well will naturally distribute more cash dividends,and vice versa.Of course,it may have an impact on enterprise performance level.And if the firm pays too little cash dividends,investors may reduce their investment in this firm,and this decision will also generate corresponding opportunity costs.On the other hand,excessive distribution of cash dividends will affect the firm's business management and the operation of the company's funds even capital chain of the company.Therefore,an appropriate cash dividend policy to balance the distribution of the company's net profit between the company's investors and retained earnings will have a significant impact on its development.How is the cash dividend policy of A-share listed companies in China progressing? How does this policy affect the performance levels of those companies? These are what this article focuses on.To this end,using the files of dividend policy and cash dividend policy of China's A-share listed companies,this paper analyzes whether and what kind of impact the cash dividend policy has an impact on the performance level of them,and makes corresponding suggestions.There are five parts in this text.The first one is the introduction,in which the research background,research content and significance,domestic,foreign research progress,etc.are what this part mainly describes.The second one is phenomenon analysis where the overall development of China's A-share listed companies' dividend policies is clarified followed by the analysis of the progress of cash dividend policy in China's A-share listed companies from specific perspectives and the problems are pointed out.The third one describes relevant theories,explains the measurement methods of relevant indicators,and put forward theoretical hypothesis.The empirical testis in the fourth part,in which this part analyzes the impact of cash dividend policy on the performance levels and performance level growths of China's A-share listed companies from a perspective of different life cycles from the issue of whether or not and the intensity of distribution(such as cash dividend tendency and dividend payment rate).Based on the above research conclusions,the fifth section proposes suggestions for cash dividend policy from the perspective of listed companies and regulatory perspectives in order to promote corporate governance and the healthy development of China's securities market(it needs to be explained that the so-called China's A-share listed companies in this paper do not include those in Science and Technology Board).Here are the conclusions in this article.(1)The cash dividends issued by listed companies during the growth stage,mature stage,and recession stage have significantly positive,significantly positive,and significantly negative effects on their next year's performance levels.(2)The increase in cash dividend payment rate has significantly positive,significantly positive and significantly negative effects on the next year's performance levels of listed companies in growth period,mature stage and recession stage.(3)When listed companies are in recession periods,the payment of cash dividends has a significantly negative impact on their next year's performance level growths,but this does not have a significantly negative effect on the growth period or mature stage.(4)The increase in the cash dividend payment rate during the recession period has a significantly negative effect on their next year's performance level growths,and while it has a positive impact during both the growth period and mature stage,but neither is significant.Furthermore,for China's A-share listed companies whose headquarters are in the eastern part of China,both the payment of cash dividends and the increase in the cash dividend payment rate can have significantly positive impacts on those firms' future performance levels during the growth period,maturity period and recession period,but neither cash dividends payment nor the increase in cash dividend payment rate has significant impacts on the performance level growths of these companies in the growth period,maturity period and recession period;for China's A-share listed companies whose headquarters are located in the non-eastern part of China,neither the payment of cash dividends nor the increase in cash dividend payment rate can significantly affect the future performance levels and performance level growths of relevant companies in the growth period and maturity period,but these actions can both have significantly negative impacts on the future performance levels and performance level growths of relevant firms which are in the recession period.Compared with the existing researches,the innovation of this article is to study the impact of cash dividend policy on the performance level growths of China's A-share listed companies from the perspective of corporate life cycle and to try to analyze the impact of cash dividend policies on the performance levels and performance level growths of those companies which are in different marketization levels from the perspective of corporate life cycle.