Study on the Impact of Government Subsidies on the Level of Corporate Cash Dividend Payments based on a Different Perspective

Abstract

At this stage, China has entered a "new normal" period of economic development in which the government plays a key role in macro-control policies and resource allocation. The level of cash dividend payment is both a guarantee for enterprises to return the rights and interests earned from consumers' investment and to signal to the market that the enterprise is operating well, and a requirement to alleviate the enterprise agency problem and help the capital market operations in an orderly manner. By paying cash dividends, enterprises improve people's livelihood and achieve social equity by sounding the income distribution mechanism. In this paper, a-share listed enterprises from 2016 to 2020 were taken as the research object, the level of cash dividend payment as the explanatory variable, the government subsidy as the explanatory variable, and 9 control variables and 2 virtual variables were selected for probit regression analysis. The results show that government subsidies have a significant effect on the level of cash dividend payment, and there are significant differences in the degree of effect among different types of enterprises, and hypotheses 1 and 2 proposed in this paper are verified.