A Study On The Motivation And Economic Consequences Of Low Cash Dividend In Media Industry

The main form of cash dividends as a return to investors has not been positively responded to in China’s stock market.The phenomenon of long-term non-dividends and low dividend ratios of listed companies is more prominent.In order to promote listed companies to attach importance to the distribution of cash dividends,the CSRC has issued a series of policies,such as the Notice on Further Implementing the Cash Dividends of Listed Companies announced in 2012;Regulatory Guidelines No.3-Announcement of Cash Dividends of Listed Companies[2013]No.43.On February 5,2018,the Shanghai Stock Exchange organized a special briefing on cash dividends for listed companies.This shows that the regulators encourage and urge cash dividends to be implemented in principle from the“knowledge”to the specific"line".Under the guidance of the China Securities Regulatory Commission,the number of companies that have made cash dividends in listed companies in China has increased,and the dividend payout ratio has increased.However,it cannot be ignored that the problem of low dividends of listed companies still exists.This paper adopts the case study method and selects Great Wall Film and Television in the media industry as the research object,and analyzes the motivation and economic consequences of its low cash dividend.Firstly,it analyzes the dividend ability of Great Wall Film and Television and finds that Great Wall Film and Television has good profitability,and the cash flow is relatively stable.The company’s available distribution profits are all positive.There is no uncompensated loss,which can meet the needs of the company’s dividends.ability.Secondly,from the two aspects of objective constraints and subjective motivation,this paper analyzes the reasons for the low cash dividends of Great Wall Film and Television.It finds that the objective constraint is that the media industry is in a period of rapid development.The company mainly retains profits within the company for external mergers and acquisitions and daily operations,while a large number of mergers and acquisitions The resulting high debts limit the company’s dividends;subjectively,Great Wall’s film and television equity concentration is high,the actual controller Zhao Ruiyong has a strong expansion motive,and the company’s incentives for executives is insuficient.Finally,by analyzing the economic performance of low-cash dividends by analyzing the stock price performance,investment project income and corporate value,it is found that the stock price of Great Wall Film and Television continues to fall,and the return of investment return rate is decreasing,measured by Tobin Q value.The value of the company continues to decline.By studying the low cash dividends of Great Wall Film and Television,It can be seen that listed companies should distribute cash dividends according to their actual operation and development.At the same time,the regulatory authorities should formulate relevant policies according to the company’s situation,which also distributes cash dividends to other listed companies.Provide a certain reference.