Research On The Motivations And Economic Consequences Of High Cash Dividend Payout Of The Chinese Listed Companies

Distribution activities are the main content of corporate financial management.Formulating a dividend policy that is suitable for your own business is critical to business operation and development.With the development and continuous improvement of the domestic capital market,listed companies have begun to attach importance to cash returns to investors,and the dividend scale and dividend ratio of listed companies have increased year by year.Accompanying more and more high-profile listed companies,the implementation of abnormal high cash payout companies exceeding their own capabilities is becoming increasingly serious.The positive and normal high cash dividend policy can bring real money to the stakeholders,which is conducive to establishing a good image of the enterprise and enhancing the value of the company.However,the unusually high cash dividend policy may damage the vital interests of some stakeholders,affect the long-term development of the enterprise and bring negative effects to the external market.This article first summarizes related theories and research results by using literature research methods,and builds the theoretical basis of this article.Based on the relevant viewpoints in the existing literature,this paper summarizes high cash dividend policy into the following three conditions:(1)cash dividend per share is greater than 0.3 yuan;(2)cash dividend per share is greater than earnings per share;(3)cash dividend per share greater than operating cash flow per share.When the amount of cash dividends paid by the enterprise meets one of the three conditions mentioned above,it can be judged as a high cash dividend policy,and further divided high cash dividend policy into normal high cash dividends and abnormal high cash dividends.Then the main influencing factors of the high paid cash dividend policy are summarized from the internal and external perspectives of the company.After that,the case analysis method was used to analyze the motivation of JMC's high cash distribution.The event research method and financial index analysis method were used to analyze the impact of the high cash dividend policy on JMC's market response,corporate value,and financial performance.Economic consequences.The study found that during 1997-2018,the proportion of high-profile listed companies in China was between 3.19% and 34.53%,and the overall trend was increasing.The proportion of abnormally high payout companies in all listed companies is between 0.83% and 29.35%.It can be seen that high cash payout policy has become an increasingly prominent phenomenon in Chinese listed companies,and the accompanying phenomenon of high cash payout policy has become increasingly serious.In this case,JMC has been paying high cash for the past ten years.Among them,2009-2016 was a normal high cash payout policy,and 2017 and 2018 were abnormal high cash payout policy.The reason for its normal high cash payout policy was mainly to send positive signals to the outside world.Reduce agency costs and idle funds due to insufficient investment.The reasons for the abnormally high cash distribution are mainly the interests of major shareholders before the exit and the huge funding gap.JMC's normal high school has now produced positive results.It responds to national policies and effectively returns investors.It has established a good corporate image and is also very beneficial to the long-term development of the company.However,the abnormally high cash payout policy lacks rationality,which brings negative market response,reduces its company value,greatly affects the financial status and continuous operation of the company,and is not conducive to the healthy and long-term development of the company.Finally,this article puts forward relevant suggestions from the perspective of the enterprise and the perspective of the regulatory department in light of the problems existing in the case company.With a view to prompting JMC to think about and improve the issue of dividend distribution;it is also of reference significance to other enterprises.At the same time,we also hope to provide a reference basis for Chinese relevant regulatory authorities and promote the healthy development of Chinese capital market.