Firm value in the Korean stock market is positively linked to cash dividend payout ratios and dividend smoothing. Companies with high cash dividend payouts or stable dividend increases tend to have higher stock prices. The market prefers firms that pay consistent dividends rather than those with fluctuating payouts. The relationship between firm value and cash dividend policy varies based on industry, market conditions, and the year of operation. This can be explained by agency, catering, financial flexibility, and life-cycle theories.