The Analysis Of The Causes Of Distributing High Cash Dividends

Dividend policy is one of the three core content of financial management of listed companies. It can not only affect the rationality of the corporate capital structure and the development prospect of the company, it also helps listed companies distribute profit or invest by dividend distribution policy. If companies want to do a better job of financial management, they need the support of the dividend distribution policy. The dividends of listed companies in China are much more casual and subjective and they lack of a stable and mature dividend policy. In order to regulate the securities market, the China Securities Regulatory Commission issued some rules in October 2008, one of which says, "the amount of cash dividend of the listed company in the past three years should not be less than the thirty percent of the average annual distributable profits in the past three years. Under the circumstance, Kweichow Moutai co., LTD. has been sticking to high cash dividend policy in series as always. To the contrast, other listed companies in the same field did not perform like this, which has attracted the attention of many scholars.The research at home can be divided into two aspects, on the one hand is about dividend policy research, on the one hand, is the study of the factors influencing the dividend policy. This research at home starts late, and the existing research focused more on the company’s internal factor. In this paper, based on the existing research literature at home and abroad, on the basis of fully understand the relevant theoretical knowledge, including the relevant concept definition and related theoretical basis, I take Kweichow Moutai high cash dividend policy as an example, analyses the reason of high cash dividend policy. According to the deep analysis of the financial situation of Kweichow Moutai, equity structure, institutional background, investment opportunities, and information transfer effect, we get that the Kweichow Moutai distributing high cash dividend has many sorts of reasons. The reasons can mainly be divided into two aspects: one is Kweichow Moutai do have the ability to distribute the high cash dividend, the second is that Kweichow Moutai is willing to high cash dividend in order to achieve the purpose of his own.In view of the Kweichow Moutai has good financial ability, specific management strategy, its distributing high cash dividend policy can be used for reference, but also the existence of some possible hidden dangers can’t be ignored, such as equity concentration. More attention is imperative from regulators so as to establish a healthy development of securities market.In the process of Kweichow Moutai high cash dividend policy analysis, this paper mainly uses the case analysis, literature analysis, comparative analysis, etc. On the premise of full access to all related study in domestic and abroad, this paper studies Kweichow Moutai case in-depth and meticulously, comparing with the other enterprises in the same industry. The research of this paper is more comprehensive, in the new era, which may be helpful for the healthy development of securities market.