Research On The High Dividend Policy Of Gree Electric Appliances

The formulation of dividend policy is affected not only by the financial status of the company,the ownership structure of the company,and the background of the policy and economic environment,but also reflects the expected development status of the company in the current year and in the future.Regulating the dividend distribution of listed companies is conducive to protecting the rights and interests of investors and guiding the healthy development of China's capital market.This is an important task for China's current economic research.In recent years,cash dividends have become the mainstream of dividend distribution of listed companies.The amount of cash dividends that China's listed companies have implemented has been increasing,making the phenomenon of high cash dividends increasing.Gree Electric Appliance Inc,of ZhuHai.is a typical representative of the implementation of the high dividend payout policy in the home appliance industry.Since its listing,it has persisted in dividends,and the amount of dividends has continued to rise,drawing attention from all walks of life.This article will focus on researching the factors that influence the high dividend policy.Firstly,we summarized the research results of domestic and foreign dividend policy theory,combined theoretical knowledge with the practice of listed companies in China,and used case analysis to analyze the influencing factors of Gree's high dividend payout policy from internal and external factors.Finally,the research conclusions are drawn: Excellent profitability and abundant cash flow are the basic prerequisites for formulating a high dividend payout policy;Equity structure and agency issues are decisive factors in the formulation of high dividend dividends;The maturation period of the company's entry into development is an objective factor for the implementation of high cash dividends;The high dividend payout policy is an effective means to deliver good information to market investors;The lack of good investment opportunities is the one of the factors that influence the policy.This article takes the specific case enterprise and its industry as the researchobject and has certain practical significance.Based on the analysis of Gree Electric Appliance Inc,of ZhuHai's implementation of the high dividend payout policy,we proposed countermeasures and suggestions for the formulation of unreasonable dividend policies: reducing high dividend payout rates,seeking healthy development of enterprises,and diversifying dividend distribution,reduce the intervention of major shareholders in the distribution of dividends,improve fund use efficiency.