Study On Cash Dividend Distribution Policy Of Wanxiang Qianchao

Dividend distribution is the allocation of net profit between the company and its shareholders,which not only relates to the company’s sustainable development, but also affects the investor’s confidence. So dividend policy is concerned by managers and investors, and the study is very necessary. Dividend distribution is not only restricted by the company’s internal situation, but also influenced by external environment, therefore, it is the key problem to make scientific and reasonable dividend distribution, concerning of all aspects of factor.In the western mature capital market, most listed companies have carried on the dividend distribution for many years, the cash dividend is the main method, and the payment level is relatively stable. At the early stage of China’s securities market, the methods of enterprise’s dividend payments are various, and companies prefer to distribute stock dividend instead of allocating cash dividend. With the continuous development of China’s capital market, cash dividend has gradually become the main way of distribution, and payment level has greatly improved, but the randomness of dividend policy is still serious. Since Wanxiang Qianchao listed, it continuously distributes cash dividend more than 20 years, and cash dividend payment level is higher than most quoted companies. So the company’s cash dividend distribution policy is representative in China’s capital market, and it has research value.In this paper, use the case study method, select the Wanxiang Qianchao as the research object and mainly study on factors that have influence on formulating dividend distribution policy.Firstly, introduce the research background, significance, themes and framework. Secondly,introduce basic situation of the company and its’ dividend distribution situation since listed on. Then analyze its’ market position in the auto parts manufacturing industry and describe the dividend distribution condition of auto parts manufacturing. Thirdly, analyze the ability of distributing cash dividend from financial situation, and willingness from corporate governance, therefore draw the determinants of dividend distribution, and analyze effects of the cash dividend on enterprise value and stock price. Finally, on the base of Wanxiang Qianchao dividend policy research, inspired, in view of the existing problems to put forward the corresponding suggestions, point out insufficiency, and look forward to the future.