Research On The Motivation And Market Response Of Listed Companies' High Dividend Policy

Dividend policy is an important financial decision of listed companies and an important part of financial management.Its impact is not only limited to the interests of the majority of shareholders,but also related to the day-to-day operations of the company,the capital structure and the long-term development of the company in the future.Therefore,how to choose and formulate dividend distribution plan has been the focus of many scholars at home and abroad.In recent years,influenced by the dividend policy issued by China securities regulatory commission,the cash dividend payment level of listed companies in China began to gradually increase,and the phenomenon of "high dividend" emerged one after another.As a giant in the home appliance industry,GREE has paid dividends 19 times since it went public in 1996,with a total dividend of 45.4 billion yuan.The company has adopted a high dividend policy for many years,and its high dividend behavior has drawn wide attention from all walks of life.Therefore,this paper makes an in-depth study on the current dividend policy of GREE,which can further enrich and improve the dividend policy research in China and has certain scientific significance.This paper firstly sorted out existing domestic and foreign literature,combined with relevant theoretical basis,selected GREE as the research object,conducted a horizontal and vertical comparative analysis of its dividend policy,and found that its current high dividend policy was obviously radical from 2012 to 2018.Secondly,this paper analyzes the current situation of GREE's high dividend from 2012 to 2018,and discusses the motivation of its dividend policy from multiple perspectives.Then,this paper adopts the event analysis method to investigate the market reaction after GREE's high payout.After that,this paper summarizes the high dividend policy of GREE and puts forward relevant suggestions.This study found that the internal reasons,such as company's good financial status,equity structure,lack of investment opportunities,in the mature stage of development as well as external reasons such as legal and regulatory constraints,anti-merger strategy and so on led to GREE high dividend behavior.Its reasonable dividend behavior on the one hand will bring a positive market reaction,on the other hand,if the dividend ratio is too high,the short-term market reaction will be lower than expected.Therefore,based on the experience of GREE in formulating dividendpolicies,the following suggestions are put forward for listed companies: firstly,reasonable dividend distribution and implementation of diversified dividend policies;Secondly,strengthen supervision to protect the rights and interests of minority shareholders;Thirdly,ensure the continuity and stability of dividend policy.