Research On Zhangyu Company’s High Cash Dividend Policy

Chinese securities market has made great progress in the continuous development and reform of more than 30 years.However,many problems have gradually emerged,such as the common phenomenon of large shareholders encroaching on the interests of small and medium shareholders.At the same time,with the increasingly significant phenomenon of high dividend of Listed Companies in recent years,non benign dividend has appeared in the market,which has a certain negative impact on the listed companies themselves and the market.The selection of dividend policy,as an important issue in the company’s operation and management activities,is closely related to the future development of the company and the return of shareholders.Therefore,it is of practical significance to study the dividend policy of high dividend.Based on the research results of domestic and foreign scholars on dividend policy,this paper has used case analysis,empirical analysis and other methods to further study high dividend.First of all,it has analyzed the implementation of Zhangyu company and its dividend policy.On the one hand,it has summarized the characteristics of its dividend distribution through the dividend policy over the years;on the other hand,it has used the event study method to study the market reaction of high dividend,and has found that although it causes certain market reaction,it does not meet the needs of the majority of investors.So why is Zhangyu still keen on high dividend policy?What factors influence its dividend policy?Then,this paper has studied the influencing factors from both qualitative and quantitative aspects.Qualitative aspects have been analyzed from financial and non-financial aspects.Quantitative aspects have quantified the relevant indicators in the above two aspects,and then has studied the influence degree and directiorn of each factor through regression analysis.Secondly,based on the in-depth study of all aspects of the dividend policy of Zhangyu company,the paper has comprehensively evaluated its advantages and disadvantages.Finally,the following five conclusions are drawn:(1)the financial level plays a decisive role in the formulation of dividend policy;(2)the ownership structure should be oriented to the implementation of high dividend policy;(3)the impact of the company’s development strategy on dividend policy cannot be ignored;(4)high dividend may not necessarily cause positive market reaction;(5)macro policy can guide the company Based on the above advantages and disadvantages,this paper has put forward some suggestions from the company level and the government level to optimize the dividend policy of Zhangyu company,and also provides some reference for other similar listed companies.