Author(s)

Tianyou Huang ¹

Affiliation(s)

¹ AWS Payments Processing, Amazon, Seattle, Washington, 98101, United States

Corresponding Author

Tianyou Huang

ABSTRACT

Financial flexibility and cash dividend payment behavior are important issues in corporate financial decision-making, which directly affect corporate capital structure, financing strategy and shareholder return. The nature of property rights, as a key factor in the internal governance structure of enterprises, determines the financial decisions of enterprises to a large extent. There are significant differences between state-owned enterprises and private enterprises in ownership structure, governance mechanism and position in capital market, which lead to their different performance in financial flexibility and cash dividend payment. It is of great theoretical and practical significance to study the effect of property rights difference on financial flexibility and cash dividend payment. Further marginal effect analysis shows that the impact of property rights differences varies in different market environments. Under the background of higher capital market opening degree, private enterprises have greater financial flexibility and dividend payment adjustment space, while state-owned enterprises are subject to more policy and capital market constraints and have less adjustment space. This study provides a new perspective for the financial decision-making of enterprises, and suggests that the government should reduce the intervention of state-owned enterprises and promote their financial flexibility. Private enterprises should reasonably adjust the dividend payout ratio to balance the return of shareholders and sustainable development. Promoting the mixed ownership reform of soes will help improve their financial flexibility and dividend payment ability.

KEYWORDS

Financial flexibility; Cash dividend payment; The nature of property rights; Fixed effect model; Marginal value

CITE THIS PAPER

Tianyou Huang, Research on the Marginal Value and Cash Dividend Payment Behavior of Corporate Financial Flexibility under Property Rights Differences Based on Fixed Effects Model. Accounting and Corporate Management (2024) Vol. 6: 24-29. DOI: http://dx.doi.org/10.23977/acccm.2024.060504.

REFERENCES

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[3] Dabboussi, Moez. Does Debt Structure Explain the Relationship between Agency Cost of Free Cash Flow and Dividend Payment? Evidence from Saudi Arabia [J]. Journal of Risk and Financial Management, 2024, 17(6): 223.
[4] Guo N, Sun P W, Xiao H. Influence of dividend tax policy tied to investment horizon on stock price stability: Evidence from the 2015 dividend tax reform in China [J]. International review of finance, 2023. DOI: 10.1111/ irfi.12408.

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