Research On Gree Electric Appliance's Dividend Policy Based On Enterprise Life Cycle

The enterprise life cycle refers to all stages of an enterprise's growth.Usually,the company's life cycle is divided into four phases: start-up period,growth period,maturity period,and recession period.Dividend policy refers to a kind of financial decision about whether the company's operating results are retained in the company or distributed to shareholders or how much.This article takes the listed company Gree Electric Co.,Ltd.(hereinafter referred to as Gree Electric Appliances)as the research object,and uses the more widely used profit retention rate method to divide the life cycle of Gree Electric Appliances.On the basis of dividing the different life cycle stages,it describes the change of dividend policy(dividend payment propensity,payment method,payment level,payment stability)in different life cycle stages of Gree Electric Appliances,and achieves dividends in different life cycle stages of Gree Electric Appliances.The description of policy changes can be found that from the initial stage to the mature stage,Gree's dividend payment tendency,dividend payment level,and dividend payment stability are all improving.In response to the reasons for this change,the financial and non-financial angles were analyzed.Finally,based on the analysis,it is concluded that: Gree's profitability has an important impact on the level and stability of its dividend payment;non-financial factors also have a certain impact on Gree's dividend policy;Gree has dividends on dividend payments.There are unreasonable issues such as relatively single payment methods and high dividend payment during the initial stage.Finally,it put forward targeted and constructive suggestions on the unreasonableness of Gree's dividend policy.In order to help Gree Electric Co.,Ltd.formulate a scientific and reasonable dividend policy in the future,promote the sustainable development of the company.The first part of this article is an introduction.The second part is related to the theory of enterprise life cycle and dividend policy.The third part is the case analysis.This part introduces Gree Electric Appliances and introduces it from the following three aspects: the basic conditions of Gree Electric Appliances,the life cycle of Gree Electric Appliances,and the distribution of dividends in different life cycle phases of Gree Electric Appliances.The foundation for the analysis of dividend policies at different life cycle stages.The fourth part is the change of the dividend policy of Gree Electric Appliances during different life cycle stages and the analysis of the reasons for the change.This part is based on the division of the good life cycle phase of Gree Electric Appliances,taking dividend payment tendency,payment method,payment level,and payment stability as several dimensions of dividend policy to study Gree Electric's dividend policy in different life cycles.analyzing the reasons for its changes from a financial and non-financial perspective.The last part is the countermeasures.Based on the previous analysis,relevant conclusions were obtained,and targeted and constructive suggestions were proposed for the irrationality of Gree's dividend distribution policy.