Research On The High Cash Dividend Of Listed Companies

Investment decision,financing decision,operation decision and dividend distribution decision are important contents in financial management.Dividend policy is a choice between a company's foreign investment and its return to investors.This is related to the vital interests of all shareholders and will have a long-term impact on listed companies.In recent years,both theoretical and practical scholars have paid close attention to dividend policy of listed companies.Although China's listed companies in recent years dividend situation has improved,on the whole there are still a small number of listed companies to carry out dividend,even some listed companies have never dividend.Among them,the continuity of dividend payment of listed companies is not high.However,in the environment of many listed companies' negative dividend,a number of listed companies with high dividend have emerged.Therefore,in order to study the causes of this phenomenon,this paper adopts the case study method.Foshan lighting,a typical representative of electrical appliance manufacturing industry,and weichai power which ranks the second in the machinery manufacturing industry,are selected as the case study object.Weichai power was listed on the Shenzhen Stock Exchange in 2007.Foshan lighting,which is also listed on the Shenzhen Stock Exchang,has been paying cash dividends every year except a few years for nearly 30 years since its listing,with an average dividend payout rate of more than70%,becoming a “cash cow”.This paper takes weichai power and foshan lighting as case study objects to explore whether there are common factors that can cause the continuous emergence of these two listed companies.This paper first introduced the research background and significance,and elaborated the research ideas and framework of this paper,then outlined the basic situation of weichai power and foshan lighting,and sorted out the distribution of cash dividends of the two companies over the years.Then from the perspective of earnings and its quality and investment opportunities,the paper analyzes the motivation of cash disbursement.Then,from the perspective of the nature of different shareholders,this paper analyzes whether the economic pressure of the actual controllers of the listed companies,the influence of "retail investors" on the distribution of cash,the shareholding of managers and the changes in equity structure are the main factors affecting the continuous distribution of cash.Finally,the following conclusions are drawn: First of all,the company's operating performance is not the main reason for the company's continuous cash out.The growth of Weichai Power's operating income and net profit can have a positive effect on the distribution of cash dividends,but the impact on Foshan Lighting's cash dividends is not obvious.Second,by analyzing the investment situation of the two listed companies,Weichai Power has invested most of its funds in financial assets in recent years,which proves that Weichai Power has a large amount of free funds to escort the distribution of cash dividends.The difference from Foshan Lighting's relatively stable dividend payment is that its investment expenditure fluctuates greatly,so investment opportunities do not have a significant impact on the distribution of cash dividends.Finally,by analyzing the equity structure of the two listed companies,this paper finds that on the premise of certain financial security,shareholder heterogeneity is the main influencing factor for the two listed companies to continuously pay high cash dividends.Finally,some Suggestions are put forward.First of all,for other state-owned listed companies,while focusing on the performance,it is necessary to establish a reasonable shareholding structure,give play to the positive role of shareholders of different nature,and establish an effective internal supervision and control mechanism,so as to formulate a reasonable and effective dividend policy that takes into account the interests of all parties;Secondly,as minority shareholders are important participants in the capital market,they should participate in the corporate governance through network and other forces,although their shareholding ratio is low,so as to have a certain impact on the management of listed companies.Finally,the external regulatoryauthorities should formulate a sound legal regulatory system to ensure the sound development of the capital market.