Study On High Dividend Policy Of Gree

Under the background of low dividend and non-dividend distribution in China's listed companies,stock price drops of Gree,which has been highly dividend-paying,have aroused widespread concern in the capital market in 2017 announced dividend announcement.Based on the theory of dividend policy,this paper explores and analyses the value relevance and the motivation of the high dividend policy in the history of Gree.On the basis of reviewing the relevant literature on the value relevance of dividend policy and the motivation of dividend policy,this paper closely combines the actual situation of dividend policy of Gree,and according to the relevant theory of dividend policy,uses the methods of linear regression,event study and normative study to analyze the value relevance and motivation of high dividend policy of Gree.The research finds that the cash dividend policy of Gree has a positive correlation with the enterprise value.The high dividend policy transmits the signals of Gree's operation,profitability and investment and financing demand,reduces the cash flow and agency cost of Gree,and caters to the cash dividend preference of large shareholders and institutional investors.The dividend policy of Gree generally conforms to the theory of value correlation,signal transmission,agency cost and greeting theory.Finally,according to the research conclusions,the paper puts forward relevant suggestions from the perspective of optimizing dividend policy of Gree,formulating dividend policy of other listed companies,and regulatory agencies.This paper has some breakthroughs in the value correlation analysis method of dividend policy and the analysis of dividend policy motivation.It can provide reference for other relevant case studies,and also provide theoretical guidance for Gree to optimize dividend policy.At the same time,it can provide empirical basis for the formulation and optimization of dividend policy for listed companies in China.