The Impact of Differential Cash Dividend Policy on Corporate Cash Dividends - An Analysis Based on Corporate Life Cycle

DOI

10.2991/aebmr.k.220405.056How to use a DOI?

Keywords

Differentiated cash dividend policy; cash dividends; corporate life cycle

Abstract

At present, China’s capital market is developing rapidly, and the dividend policy issued by the SFC has also undergone a series of changes, but the mandatory and semi-compulsory dividend policy introduced in the previous period has great limitations and the implementation effect has been subject to many controversies. Therefore, in order to adapt to the development, the SFC issued a differentiated cash dividend policy in 2013, which determines the ratio of cash dividends for listed companies according to the life cycle of companies and the presence of significant capital expenditure. This paper empirically examines the impact of this policy on cash dividends of listed companies in the context of this policy. It is found that the introduction of the differentiated cash dividend policy significantly increases the willingness and level of cash dividends of listed companies; at the same time, the correlation between the growth of listed companies and the willingness and level of cash dividends is also significantly strengthened. This paper demonstrates the effectiveness of the differentiated cash dividend policy through research, providing an empirical basis for improving the relevant dividend policy, which has a positive effect on promoting the development of the capital market.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Qu Mengyu
PY  - 2022
DA  - 2022/04/29
TI  - The Impact of Differential Cash Dividend Policy on Corporate Cash Dividends - An Analysis Based on Corporate Life Cycle
BT  - Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022)
PB  - Atlantis Press
SP  - 345
EP  - 348
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220405.056
DO  - 10.2991/aebmr.k.220405.056
ID  - Mengyu2022
ER  -