Research On The Impact Of Abnormal Cash Dividend On Corporate Performance Of A-share Listed Companies

Sustainable and reasonable dividend is the basis of the stable development of the stock market.In recent years,with the implementation of regulatory policies just like semi-compulsory dividend policy or the differentiated dividend supervision policy,our country listed companies’ dividend willingness and dividend level have improved.But statistics show that abnormal high cash dividends and abnormal low dividends are exist in China’s A-share market,and the phenomenon of abnormal low dividends have intensified.The dividend theory has been developed for a long history,however,due to the difference between Chinese capital market and western capital market,the dividend anomaly in Chinese market cannot be explained by western dividend theory completely.The studies by domestic scholars on abnormal dividends are relatively,although some studies have focused on the impact of abnormal high dividends or abnormal low dividends on corporate performance,few have analyzed the difference between the effects of abnormal dividends and normal dividends.Although some scholars have researched the differences in dividend policies between companies with different life cycles,there are relatively few studies focused on whether abnormal cash dividends have different effects on companies with different life cycles.Therefore,this paper will draw on the methods of domestic and foreign scholars to research the impact of abnormal cash dividend on corporate performance of listed companies in China and the difference of the impact of abnormal cash dividends on corporate performance of enterprises with different life cycles.Using two-way fixed effects model,this paper makes an empirical analysis on the relationship between abnormal cash dividends and corporate performance of Shanghai and Shenzhen A-share listed companies from 1998 to 2021.The results show that compared with normal dividends,no dividend,abnormal high dividends and abnormal low dividends have negative impact on corporate performance.Group test was further conducted according to the life cycle of the company,and inter-group coefficients were compared by using Chow test,the results show that compared with normal dividends,no dividend,abnormal high dividends and abnormal low dividends have different negative effects on corporate performance in different life cycle stages.This study enriches the research on abnormal cash dividend,and provides a certain reference for regulators to improve the dividend supervision policies in the future.