Study On The Influence Of Wanhua Chemical Dividend Distribution On Enterprise Value From The Perspective Of Life Cycle

The 14 th Five-Year Plan for National Economic and Social Development and the Outline of Long-term Goals for 2035 adopted in 2021 clearly point out that the dividend system of listed companies will be improved and institutional investors will be vigorously developed.In this context,China Securities Regulatory Commission issued the No.3 Guidance on the Supervision of Listed Companies-Cash Dividends of Listed Companies(Revised 2022),which has increasingly tightened the supervision on dividends of listed companies.In order to adapt to the current market policy system,listed companies actively adjust the dividend distribution scheme,constantly attracting investors’ attention,and thus affecting enterprise value.Different dividend distribution schemes will be adopted in different development stages of the company,and the dividend distribution level in different periods will have different impacts on enterprise value.Therefore,it is of practical significance to study the impact of dividend distribution on enterprise value from different life cycle perspectives.The Wanhua chemical selected in this paper belongs to the chemical raw material manufacturing industry,is the important industry of strategic development in our country,is related to the economic lifeline of the country.It is one of the important measures of national strategic development to guarantee the sustainable development of chemical enterprises and promote the value of enterprises.This paper takes the dividend distribution strategy under different life cycle as the research object to study the influence of Wanhua Chemical’s dividend distribution on enterprise value.Firstly,it analyzes the governance structure and financial situation of Wanhua Chemical,summarizes the development characteristics of the enterprise,and then selects the cash flow method to divide the life cycle stages according to the characteristics.Secondly,according to the different life cycle of the dividend distribution of Wanhua Chemical analysis of the status quo,summed up the characteristics of each life cycle of the dividend distribution and the motivation;Finally,according to the different characteristics of the growth period and maturity period,different enterprise value indicators are selected to analyze how dividend distribution affects enterprise value from the perspective of short-term value and long-term value.The results show that the low level of dividend distribution strategy adopted by Wanhua Chemical in the growth period can not get a good market response in the short term,but can accumulate more funds for the enterprise’s operation and development,which is conducive to the improvement of long-term value.In the mature stage,the enterprise has sufficient capital,and paying a higher level of dividends is in line with investors’ expectations,which is conducive to increasing brand effect,adjusting capital structure,and improving the long-term value of the enterprise.