A Study On Higher Cash Dividends Policy Of Y Company

The dividend policy of listed companies is essential for business activities,and financing activities,investment activities and financing of the company known as the three major financial decisions,the domestic capital market started late and is not mature,compared with the western mature capital market,the dividend policy of Chinese enterprises is not entirely reasonable,many enterprises for dividend distribution blindly don't take random assignment or less dividend policy,which attracted the attention of scholars.In recent years,with the introduction of national policies,more and more enterprises dividend increase,some companies take dividends even ultra ability cash dividends dividend policy,have attracted more and more research on the dividend policy of the scholars and investors.Therefore,this paper from the domestic and foreign scholars on the basis of the study of dividend policy,the study on enterprise cash dividend dividend policy,and provide reference for the study of corporate dividend policy and scholars.This article first introduces the concept of high cash dividend policy,theory and influence factors of related theory mainly dividend theory has nothing to do with theory,the influence factors including ownership structure,investment opportunities,and legal factors and industry factors,such as case study to lay a theoretical foundation for later.Second,Y company as case analysis,the study of Y company's current dividend policy,at the same time,compared with other industry company's dividend policy,Y company belongs to high cash dividend policy dividend policy,and dividend payment rate is much higher than other companies in the same industry.Next,the Y company take high cash dividend policy of the existing problems and causes,and found the dividend pay disparity,super ability to send now,not fully consider the problem such as investment opportunities,and the controlling shareholder and management buy-outs,government subsidies,legal and industry factor is the main reason.Then,for Y company adopts high cash dividend policy and the economic consequences is analyzed,including the financial ability,enterprise value and the market reaction,etc.,draw the conclusion: when the company Y to take high dividend payment rate,their various financial indicators,and not only did not increase the value of the enterprise,makes its value to drop,at the same time for signaling effect is bad,that Y high cash dividend policy of the company had a negative effect on it.Finally,in view of the problems of Y company,put forward the improvement Suggestions from the following three aspects: the first is the implementation of the steady cash dividend policy,including stable dividend payment rate,avoid the super ability to send now,give full consideration to investment opportunities;The second is to strengthen the company's internal governance,including give play to the role of incentives,change a the dominance,strengthen the regulation of shareholders,and optimize the governance structure;The third is to suggest improvements to the environment outside the company.