The Study Of Ultra-ability Dividends Payout From The Perspective Of Equity Financing

Before2000, listed companies pay little attention to investors’ returns and distribute less cashdividends.Therefore, the SFC made it clear in2004that if listed companies haven’t distributed cashdividends in the last three years, they cannot issue new shares to the public.Although the cash ratioof Chinese listed companies gradually increased, the following problem of ultra-ability dividendspayout also emerged and caused much attention. Some listed companies appeared ultra-abilitydividends payout at the same time implementing refinancing, some listed companies start to appearthe phenomenon of ultra-ability dividends payout after implementing equity financing. Manyscholars believe that ultra-ability dividends payout is related to our policy guidance of Chinasecurities regulatory commission (CSRC). It is a means of controlling shareholder’s transportinginterests which damage the interests of minority shareholders.Using both theory analysis method and case analysis method to study the problems ofultra-ability dividends payout on the perspective of equity financing, we found the purpose of listedcompanies’ ultra-ability dividends payout is to meet the requirements of refinancing and controllingshareholders’ occupation of interests. Based on the dividend agency theory and refinancing theory,we described ultra-ability dividends payout and equity financing of listed companies in China underthe policy of half a mandatory dividend. And taking Tianfu energy as a typical case, combining withother companies of the industry,we respectively discussed the motive to ultra-ability dividendspayout from the viewpoints of IPO, rights, private placement. We found that in the context of half amandatory dividend policy, the reason for listed companies in industry of electric and heating powerto implement ultra-ability dividends payout when implemented equity financing in that year or theyear before, is to meet the requirements of refinancing,satisfy controlling shareholders quicklyrecouping their investment capital and realizing transport the interests. From the perspective ofcorporate governance and regulatory, putting forward to strengthen the supervision of listedcompanies’ measure and suggestion, to regulate the behavior of dividend distribution of listedcompanies, promote the healthy development of securities market in our country.