Research On The Motives And Economic Consequences Of China Shenhua Distributing High Cash Dividend

Dividend policy is very important to the management of listed companies,and the domestic capital market is not mature,compared with the western more mature capital market,China's listed companies dividend distribution is not completely reasonable,many enterprises for cash dividend distribution is too casual,the dividend policy is not scientific,Thus aroused the high attention of scholars.In recent years,with the introduction of a series of policies of the SFC,more and more companies choose to issue cash dividends,some companies have to take the dividend policy of high dividend or even super ability,which has aroused the interest of scholars and investors in dividend policy.Therefore,based on the research on dividend policy,the author studies The dividend policy of high dividend of listed companies with Shenhua as an example,so as to provide a reference for the formulation of cash dividend policy and the research of later scholars.This paper first introduces the concept of dividend policy,theory,cash dividend distribution of the overall status quo and impact factors,for the specific analysis below lay the foundation.The theory part mainly is the principal-agent theory,the signal transmission theory and the synergetic effect hypothesis,and the influencing factors include the internal financial factors,non-financial factors and external environmental factors.Secondly,with China Shenhua as a case study,the current dividend policy of China Shenhua is studied and compared with the dividend policy of coal mining and washing industry,it is found that China Shenhua's dividend policy of 2016 years belongs to the dividend policy of high dividend,and its dividend distribution rate is much higher than the industry average level.Then,the paper studies the financial basis and motives of China Shenhua's dividend policy,and finds that there are some problems,such as uneven dividend payment,abnormal high dispatch,and so on,which are the main reasons of policy promotion,signal transmission and integration and reorganization.Then,the economic consequences of China Shenhua using the dividend policy of high dividend are analyzed,including the enterprise value and market reaction and the impact of the merger and reorganization,the conclusion: China Shenhua's dividend policy is continuous,the company's profitability is better,the use of assets more efficient but solvency is deficient,A comprehensive view of the ability to pay high cash dividends.When China Shenhua takes a high dividend rate,the rapid decline in its share price,not only did not enhance the value of the enterprise,but the value of a slight decline,but also adverse signal transmission effect,indicating that China Shenhua abnormal high faction is not likely to bring positive market response,but the major merger and reorganization made a certain contribution.Finally,from the following three suggestions: the first is to formulate a scientific dividend policy,the second is that investors should establish a correct investment concept,the 3rd is to improve the external regulatory mechanism.