Research On The Motivation And Economic Consequences Of High Cash Flow Of Listed Companies Held By Venture Capital

Since the establishment of the Shanghai and shenzhen stock exchanges and the domestic stock market,the cash dividends of listed companies in China have been in a state of fluctuation and instability.Cash dividend,one of the methods of dividend distribution,has always been the focus of financial decision research.Based on chuanhuan technology’s high dividend policy,this paper studies the causes and economic consequences of its current high dividend policy,which is of practical significance for other listed companies with venture capital holdings in dividend policy formulation.In this paper,three research methods of case analysis,event research and literature research are adopted,and three theories of dividend policy,namely life cycle theory,signal transmission theory and agency cost theory,are combined to study the motivation and economic consequences of chuanhuan science and technology to pay high cash dividend.The research shows that "corporate governance","market environment","policy promotion" and "signal transmission" are the motivations for chuanhuan science and technology to choose the dividend policy of high current dividend.For chuanhuan science and technology choose high cash dividend policy of science and technology brought about by the economic consequences,this article from the "market" and "the value of the company" two aspects has carried on the analysis,the conclusion shows that the chuanhuan science and technology in choosing the high cash dividend and failed to produce the expected positive impact,not actively sought after by investors,the corresponding value of the company also fell slightly,analysis conclusion conforms to the "agency cost theory" and "signaling theory".In addition,based on the above conclusions,this paper also puts forward corresponding Suggestions for the future cash dividend policy formulation of chuanhuan technology,and provides some enlightenment for other listed companies in the formulation of cash dividend policy and the protection of interests of small and medium investors.