An Analysis Of The Reasons And Effects Of Gigabit High Dividends

Dividend policy is very important for the management of listed companies.Compared with the more mature capital markets in the West,the dividend distribution of listed companies in China is not completely reasonable,which has attracted great attention from scholars.In recent years,with the promulgation of a series of policies by the CSRC,more and more companies choose to issue cash dividends.Some companies have adopted abnormal dividend policies that pay high cash dividends or even supercapacity cash dividends,which has aroused scholars and the general public.Investors' attention to dividend policy.Based on the existing research on dividend policy by domestic and foreign scholars,the author studies the dividend payment policy of a listed company's high cash dividends by taking the case of high-level cash dividends of Gigabit Corporation as an example,with a view to formulating cash dividends for listed companies.This article first collates the literature of the over-disbursement of cash dividends,and expounds the theoretical basis and current status of dividend distribution of listed companies in China.Then,the company's own situation and the situation in the same industry are analyzed through a comparative method.Finally,from the perspectives of equity structure,operating conditions,and economic value added,the reasons for the high-level cash dividend policy of the case company were analyzed,and the effects of the high-level cash dividend were analyzed using event research and other methods.Based on the above research and analysis,it is concluded that the reasons for the high cash dividends of Gigabit Corporation include the concentration of large shareholders to convey interests,catering to institutional investors,the company's business condition is good,the good news to the market,and the regulatory agency encourages listed companies to pay cash dividend.The market reacted positively to Gigabit's highvolume discovery gold dividend,and the incident increased the company's external attention.The distribution of cash dividends by Gigabit is in line with the company's current situation,and it is a reasonable behavior of giving back to shareholders,but it is also a behavior of large shareholders transferring wealth,which harms the interests of small and medium shareholders to a certain extent.Based on research,this article suggests that listed companies should insist on stably distributing higher levels of cash dividends and optimize their shareholding structure.Regulators should continue to improve cash dividends-related regulations and policies,regulate the behavior of listed companies,and thus promote the development of the Chinese securities market.