Research on the Influence of Economic Policy Uncertainty on Cash Dividend Policy

Abstract

Based on the sample of A-share listed companies in China from 2013 to 2021, this paper explores the influence of economic policy uncertainty on cash dividend policy through random effect panel regression, and draws the following conclusions: First, the increase of economic policy uncertainty will make enterprises pay more cash dividends; Secondly, compared with enterprises with low financing constraints, enterprises with high financing constraints are more willing to pay more cash dividends in the face of increasing economic policy uncertainty; Finally, the higher the growth of enterprises, the more significant the impact of economic policy uncertainty on cash dividends of enterprises. The research of this paper not only further expands the research direction of economic policy uncertainty and cash dividend policy, but also has certain guiding role for enterprises to formulate more reasonable cash dividend policy.