Abstract: Based on the dataset of 1353 listed companies from 1998 to2009 in China in this paper, a panel structural vector auto-regressive model is established to analysis the relationship between cash-dividend, investment efficiency and corporate value by classifying the sample according to economic nature of ultimate controller and whether payment is continuous. The impulse response function and variance decomposition for continuous-payment companies and discontinuous-payment companies reflect the following results. As to the private company, the investment occupies the positively effect of the cash dividend and bring about the negative cumulative impulse in discontinuous payment companies while the opposite is true in continuous-payment companies. The response function value of investment to the impulse of cash dividend and impulse of investment to corporate value are all negative in the whole local government controlled companies. Although the continuous-payment curb the overinvestment in the central government controlled companies, that has little effect on investment variance. If discontinuous-payment companies controlled by central government are implemented financing policy for conditions of paying cash dividend, they will be limited to develop.

Key words: cash dividend, investment efficiency, corporate value, panel structural VAR