This study explores the potential impact of cash dividends and share cancellations on corporate value, considering firms’ financial characteristics, and provides ex-ante insights into the effectiveness of such policies under the anticipated Value-Up Program. Considering that policy effects may differ depending on firms' financial characteristics, This study analyzes interaction effects using dummy variables representing firms in the upper group of financial characteristics. The interaction effect indicates that cash dividends have a significant positive incremental effect on future firm value among financially sound firms. In contrast, although share cancellations are not significant in the baseline analysis, additional analyses employing alternative dependent variables that directly reflect market expectations and short-term firm performance reveal significant positive incremental effects among financially sound firms. Furthermore, the simultaneous implementation of share cancellations and cash dividends generates greater positive effects, particularly among financially sound firms. These findings suggest that shareholder return policies under the Value-Up Program should be tailored to firms' financial characteristics and that combining share cancellations with cash dividends may be more effective than adopting either policy independently.