The impact of government grants on the level of corporate cash dividend payments Research

As a way to compensate for market failures, intervene in the market economy and support specific industries, government subsidies are important for improving the efficiency of fiscal expenditure, adjusting and optimising the economic structure and rationalising the distribution of national income. The level of cash dividend payment often reflects the operating conditions of enterprises, and the impact of government subsidies on the level of cash dividend payment of enterprises can reflect whether the allocation of government subsidies is reasonable. This project uses data from 4,610 non-financial listed enterprises in China A-shares from 2016 to 2020 to conduct an empirical study on the relationship between government subsidies and cash dividend payout levels, and to explore the impact of government subsidies separately by industry. The study found that: government subsidies have a general effect on the increase of cash dividend payment level of enterprises; the fundamental factor that government subsidies have different effects on the cash dividend payment level of different industries is the requirement of cash flow of enterprises; the new manufacturing industry, wholesale and retail industry, real estate industry and agriculture, forestry and fishery industry are significantly affected by government subsidies.