Research On The High Payout Dividend Distribution Policy Of Iron And Steel Enterprises In The Context Of Supply-side Structural Reform

Dividend distribution policy,as one of the important financial policies of listed companies,plays a vital role in the long-term stable operation and development of listed companies.The types of dividend payments mainly include cash dividends,stock dividends,property dividends and debt dividends.Among them,cash dividends refer to dividends paid in cash,which is the main way to pay dividends for currently listed companies.The payment of cash dividends must not only be based on the accumulated earnings of listed companies,but also have sufficient cash balances on the books of listed companies.Therefore,listed companies need to prepare sufficient cash in advance before paying cash dividends.From the perspective of investors,investing in company stocks,on the one hand,in order to obtain the benefits of stock appreciation,on the other hand,it also hopes to obtain rich cash dividend returns through investment;from the perspective of maximizing the value of the company,it is necessary to ensure sufficient retained earnings are used for the future development of the listed company.Moreover,the distribution of cash dividends will also communicate the future strategic development situation to the outside world through information transmission.How to distribute dividends reasonably and effectively has always been a financial management issue worth studying.Based on previous research,this paper selects Fangda Special Steel Technology Co.,Ltd.(hereinafter referred to as “Fangda Special Steel”),a listed company with a high cash dividend and dividend rate in the steel industry,as a case for analysis.According to the 2012 industry classification of the CSRC,Fangda Special Steel is classified as a ferrous metal smelting and rolling processing industry according to its main business,which can usually be considered as the steel industry.Iron and steel materials,as indispensable raw materials for heavy industry production,play an important role in the construction of China’s infrastructure,but with the normalization of China’s economy,excess capacity in the steel industry has become a constraint to the development of the entire industry.At the end of 2015,the state proposed reform policies such as supply-side structural reforms,leading the iron and steel industry out of difficulties,carrying out capacity replacement and upgrading,and reshaping regional layout and capacity structure.Since 2016,the overall situation of the steel industry has eased,and Fangda Special Steel’s cash dividends have remained consistent.Even in 2015 when the company’s overall operations and profitability are not optimistic,it will still distribute cash dividends and pay dividends.The rate is as high as 30.05%.In the past two years,cash dividends have been distributed at high dividend rates.This article analyzes the distribution of cash dividends before and after the supply-side structural reform of the other large and special steel in the following parts.First,through the study of relevant literature,understand the research status and available research directions of dividend distribution policy,understand the relevant theoretical basis and high pay dividend policy;second,use financial analysis and non-financial analysis to study supply Before and after the reform,the influencing factors of Fangda Special Steel’s dividend distribution policy and the reference in the industry;finally,summarize the relevant experience and make recommendations.