Abstract: This paper takes the differential cash dividend policy in 2013 as the institutional background. We test on the effects of the policy on the dividend behavior of listed companies. We show that the differential cash dividend policy significantly enhances the propensity and magnitude of dividend payments of Chinese listed firms. Further, Classify companies by different life cycle stages and capital expenditure arrangements. We show that after the implementation of the differential cash dividend policy,the growing firms reduce the propensity and magnitude of dividend payments, the mature firms increase the propensity and magnitude of dividend payments, the declining firms don't change the propensity and magnitude of dividend payments. Firms with significant capital expenditure arrangements reduce the magnitude of dividend payments, but their propensity of dividend payments don't change significantly.This paper examines the applicability of the dividend life cycle theory in Chinese capital market, and provides a theoretical and empirical basis for the regultory layer to further improve the dividend regulatory policy.
Key words: corporate life cycle; cash dividend policy; tendency of cash dividend; level of cash dividend