Study On Motivations And Economic Consequences Of Ultra-ability Dividends Payout

Compared with western countries, the cash dividends policy of China starts relatively late and is imperfect. Before 2000, the listed companies basically do not pay attention to the interest of investors and almost have no cash dividends. To improve this situation, the CSRC constantly introduces relevant policies to encourage listed companies to pay cash dividends since 2004 and then the proportion is increased. However, abnormal cash dividends payment is appearing. Some listed companies even pay cash dividends beyond their profitability. So the phenomenon of ultra-ability dividends payout gradually surfaces and causes the extensive attention. Academia agrees that the ultra-ability dividends payout is closely related to the Commission’s policy orientation. They think it’s a way of controlling shareholders to transfer benefits and against the interest of small shareholders.Choosing the topic under the above background, this paper deeply analyzes the motivations and economic consequences of the listed companies based on the existing theories. Adopting the method of combining theory with case study, this paper selects Shenzhen Infinova Limited as the research object and makes a comprehensive analysis of this company. There are six parts in this paper. The first chapter proposes the research background, research significance, research framework and innovation; The second chapter of this article is system background of China, theoretical basis and literature; The third chapter is situation and structural analysis. It puts forward the situation of the listed companies in China; The fourth chapter is the introduction of Shenzhen Infinova Limited and sort out the dividend policy of this company, then this part researches the motivations of ultra-ability dividends payout; Chapter 5 is to do a research of the economic consequences; And the last part summarizes the conclusion of the above every part.Finally, it concludes that the main motivation of ultra-ability dividends payout is controlling shareholders transferring their own benefits. This paper explores the consequences through three points of view, market perspective, financial perspective and policy perspective.