The Analysis Of Ultra-ability Dividends Payouts Of Infinova Co.,Ltd.

Ultra-ability Dividends Payouts come out with our country's unceasingly a-half mandatory refinancing policy.Before 2000,Investors are unable to get returns on capital because of more than half of the listed company doesn't distribute cash dividends.The China Securities Regulatory Commission in order to protect the rights and interests of investors,Requires public companies that additional rights issues after distributing cash dividends for at least 3 years consecutively.Then more proposed three years accumulative total cash dividend amount must be more than 30% average annual distributable profits,new rules are come out,the internal corporate governance require to attach importance to the opinions of the minority shareholders and protect the interests of minority shareholders.A series of policies are come on,the proportion of the cash dividend company is growing and has achieved initial success.Even the Ultra-ability Dividends Payouts present in our country,it almost non-existent in the western developed capital market,due to the capital market in China started late and its development time is short,this abnormal dividend policy caused attention and thinking of me.According to reserved results of domestic and foreign scholars on the issues of ultra-ability cash dividends.This paper split the concept of ultra-ability cash dividends into revenue aspect and cash flow aspect.Ultra-ability cash dividend is the phenomenon that earnings per share is less then cash dividends per share.Based on the agency theory,theory of one bird in the hand and the research on the relationship between the dividend policy and corporate governance,this paper discuss how corporate governance influence the ultra-ability cash dividends.Consider with our country's situation,this research focusing on the internal governance structure and external governance environment.Internal governance structure includes major shareholders,investors and the occupy the interests of small shareholders,caused by ownership concentration,Independent directors lack of independence,the weak of board of supervisors and the failure of salary motivation on managers.External governance environment includes the policy of board of supervisors is weak,legal protection is not perfect,the market of control power developed slowly and the irrationality of investors.The innovation of this paper is to focus on the causal relationship at the Ultra-ability Dividends Payouts.The refinancing policy is connected with the cash dividends,beginning with the consequences of the Ultra-ability Dividends Payouts of the listed company,further analysis of the reasons for the emergence of Ultra-ability Dividends Payouts.The consequences of the main considerations are the business finance achievement,the shareholder wealth,the market reflects.And for the reasons of corporate governance,it can be divided by internal and external factors.Internal cause is due to the imperfect corporate governance structure,Shareholders rely on their absolute advantage of equity,Transfer the listed company resources through cash dividends.Meanwhile,Small and medium-sized shareholders lack of the right to speak on the operation and financial decisions,be in a passive position.External factors are unhealthy external governance environment,Due to the lack of effective supervision on the major shareholders and the lack of strong protection for minority shareholders,shareholders are not treated equally,and interests are misappropriated by a small number of people.Investors need more rational investment,Market for Corporate Control in our country should continue to improve and develop.The conclusion is that the Ultra-ability Dividends Payouts should be eliminated in the long-term development of listed companies.Regardless of their profitability and their ability to cash,paid the undistributed profits for the previous year or finance dividends,Lead to cash flow emerging questions.On the one hand,business performance and future sustainable development will suffer damage,on the other hand,the cash shortage is bound to issuing equity financing from the capital market.This paper is based on the case that Infinova Co.,Ltd.keeps paying dividends over its ability during five years after its listing.We find that companies that pay dividends over it's ability have general characteristics in industry background,ownership structure,financial conditions,cash dividends and source of capital.After always on its internal governance and external environment,we lead to following revelation(1)The dominate is the main reason of ultra-ability cash dividends;(2)Ultra-ability cash dividends is due to irrational cash dividends caused by equity concentration;(3)It has a negative impact on financial performance and sustainable development.From the first small beginnings we can see how things will develop,this paper will give out same countermeasures for the problem of corporate governance and also give some suggestions on supervision and protecting law to make dividends policy of our country perfect,to furtherance a healthy and sustainable stock market.