Research On The Impact Of Not Offering Cash Dvidends Of Gree

As one of the important ways of returning investors,cash dividend policy has always been paid attention by listed companies and investors.In recent years,with the maturity of China’s capital market,China Securities Regulatory Commission(CSRC)is constantly improving the policy system related to cash dividend policy.Liu Shiyu,chairman of China Securities Regulatory Commission,stressed in his public speech in 2017 that the cash dividend of listed companies should be regularized to ensure the real interests of investors.This paper chooses the event that Gree didn’t offer cash dvidends in2017 as the research object,and uses case study method and event study method to analyze the impact of this dividend-free behavior of Gree Electric Appliances on its market performance and financial performance.Firstly,this paper expounds the background and significance of cash dividend policy,and then briefly introduces the theoretical concept and policy system of dividend distribution.Secondly,this paper briefly introduces the event of Gree Electric Appliances,and analyses the dividend distribution situation of Gree Electric Appliances in recent 10 years in detail.At the same time,it analyses the reasons why Gree Electric Appliances does not distribute cash dividend from the perspective of macroeconomic environment and the main body of the company.Thirdly,this paper analyses the market performance and financial performance of Gree Electric Appliances.Fourthly,this paper draws corresponding conclusions and puts forward some feasible suggestions on the content of this study.Through the analysis of the event that Gree didn’t offer cash dvidends,this paper draws a conclusion that the event triggered a series of negative market reactions,including stock price dropping,Gree Electric’s stock volume selling,etc.,but it has no significant impact on the financial performance of Gree.