Research On Dividend Policy Of Zhejiang Longsheng Stock Company

Since its establishment,Zhejiang Longsheng Co.,Ltd.(hereinafter referred to as Zhejiang Longsheng)has continuously developed and grown,and has made outstanding achievements in the dye chemical industry.In recent years,it has also been involved in the real estate industry across industries,and has also invested in Didi,Ningde and Wailli.When most companies in the industry still have to resist the risks of the chemical industry,Zhejiang Longsheng can still develop rapidly.Especially after the explosion in Yancheng,most of the small chemical companies withdrew from the market,while Zhejiang Longsheng could still go against the trend and gradually become the leading company in the dye chemical industry.However,investors are more concerned about the company’s dividend distribution policy while focusing on the company’s operating performance growth.During the growth of the company,the company has gone through different stages of development.Does the dividend policy at different stages reflect changes in the company’s performance? Are there any practices that can be improved,that is,a dividend policy that can guarantee the future development of the company and satisfy the interests of shareholders It is worth studying.Research in this area can help companies to develop better,but also provide some reference for companies in the same industry.In the research of the thesis,Zhejiang Longsheng Company is divided into different life cycle stages through the retained yield method and cash flow method,and then the company’s dividend policies at different stages are analyzed in detail.The full text is divided into five parts.The first part introduces the background,purpose and significance of dividend policy research,summarizes the relevant research results of domestic and foreign scholars on dividend policy in recent years,and determines the research framework of this article.The second part explains the related issues of the dividend policy under the life cycle from the two perspectives of the dividend policy and the life cycle,and paves the way for later analysis.The third part introduces the basic situation of Zhejiang Longsheng,and divides the life cycle of the company’s dividend policy.Using the common retention rate method and cash flow method,Zhejiang Longsheng is divided into two stages: the start-up period and the growth period.During the life cycle,the status of dividend distribution and the characteristics of dividend distribution were analyzed at the same time.It was found that Zhejiang Longshengwas basically dominated by cash in the form of dividend distribution from the start-up period to the growth period,and has always shown a high tendency to pay.However,the dividend payment rate has been declining year by year.The fourth part is based on the third part.Through in-depth analysis,it is found that the characteristics of dividend distribution are realized.The result is that when the company formulates the dividend policy,it ignores the overall development of the enterprise,adopts a single payment method,and the payment level and the rules of enterprise development do not meet the results..After detailed analysis,it is found that the profit,debt repayment and growth ability and cash flow of the financial elements;at the same time,the industry and legal elements of the non-financial elements will have an impact on policy formulation.In the fifth part,this chapter makes specific suggestions on the existing problems in the dividend policy,as well as the financial and non-financial factors that affect the formulation of the dividend policy.For example: choose a variety of dividend payment methods and use a variety of dividend distribution forms;adjust the appropriate payment level according to the development cycle of the enterprise;formulate a long-term dividend plan;optimize the company ’s equity structure to protect small and medium shareholders;improve the company’s financial situation;At the same time,the policy will give back to the society in time.