Research On The Motivation And Effects Of High Cash Dividends In Retail Industry

Dividend policy has always been an important research object for scholars at home and abroad.When making financial decisions,companies formulate a stable and correct dividend distribution policy,which not only affects the company's operating conditions?external investment and financing activities,but also helps to Guide the improvement and development of China's Securities Market.In recent years,with the economic development and upgrades in the consumption structure,listed companies in China's retail industry have also entering an important period of both opportunities and challenges.At this time,the company's dividend policy seems to be of great importance.As a leading company in the retail industry,Dashang Co.,Ltd has been paying high cash dividends for nearly 7 years.As a typical representative of the retail industry's implementation of high-paid dividend policies,researching the motivation and effects of its policy can help to improve the theoretical system of dividend policies of the retail listed companies and provide an important reference basis for government's policy-making.This article adopts research methods such as case analysis,selects Dashang Co.,Ltd that occupy an important position in the Northeast retail market as research objects,and combines the relevant theories ofdividend policy,including "One Bird In Hand" Theory,Agency Cost Theory,Signal Transmission Theory,and Life Cycles Theory to analysis the motivation and effects of the higher cash dividends by Dashang Co.,Ltd for 7 years.The research results show that the external motivation for Dashang Co.,Ltd to formulate a high-paid dividend policy are its mature and stable retail industry ? the implementation of the semi-mandatory dividend policy and transfer to market investors of the company's sound operating conditions.Meanwhile,The dispersed ownership structure,fewer investment opportunities,and good financial conditions are its internal motivations.Moreover,there are good and bad effects on the implementation of this dividend policy.One one hand,It helps to establish a good social image,on the other hand,it also gave back profits to small and medium-sized investors and reducing agency costs,but at the same time,market investors had a relatively negative effect on the unstable high-payment policy of Dashang Co.,Ltd.As a result,corporate value has also declined.Based on the above research,this article proposes some measures to implement this dividend policy for Dashang Co.,Ltd,and made suggestions for the dividend policy of other listed companies in the same industry.