Research On The Motivation And Economic Consequences Of High Cash Dividend Policy In Kweichow Moutai

Cash dividend policy is a way for enterprises to allocate profits.It is a way of financial management,which not only balances the development of enterprises,but also brings rewards to shareholders.The appropriate cash dividend policy can have a positive impact on the future development of the enterprise,including the rights and interests of the shareholders and the investment confidence of the investors.When cash dividend distribution level is low or even not allocated,it will affect the enthusiasm of shareholders and investors,and thus have a certain impact on the market price of stocks.But when the cash dividend distribution level is too high,it will make the enterprise retain less net profit,thereby reducing its business and reinvestment chips,and be bad for the subsequent development.Therefore,the formulation of cash dividend policy is very important for enterprises.China's securities market is not mature compared with the western countries.In terms of cash dividend policy,many profitable listed companies rarely distribute dividends or distribute dividend discontinuously,and even do not distribute dividends,so that investors can not get their corresponding return on investment.Therefore,investors tend to get capital gains from stock price differentials,and speculation is prevalent in China's stock market,which seriously affects the healthy development of China's securities market.In this market environment which pays more attention to financing than return,there are different companies that distribute continuously high cash dividends,Kweichow Moutai is one of the high cash dividend policy stand head and shoulders above others in the A stock market,In the dividend scheme of2018,the dividend per 10 shares has exceeded 100 yuan,which is the other listed companies are out of reach.Kweichow Moutai is not only the first in cash dividend,but its share price is also in the top place in the rapid growth of the year.Under the premise of most of the listed companies are tight cash dividends,Kweichow Moutai outshine many investors.This has attracted a lot of investors' attention.Therefore,taking Kweichow Maotai as an example,this paper makes an in-depth analysis of the motivation and economic consequences of its cash dividend policy.Firstly,we study the motivation of the high cash dividend policy in Maotai,Guizhou.This paper mainly analyses the financial motivation,signal transmission,investment opportunities and the guidance ofthe dividend policy to understand the correlation between these four motivations and the high cash dividend policy in Guizhou Maotai.Then,the paper explores the economic consequences of high cash dividend in Guizhou Maotai,to understand its market reaction and its possible impact on enterprises and institutional investors.This paper discusses the market reaction of high cash dividend policy in Guizhou Maotai,stock price volatility,the impact on agency costs and the institutional investors.After knowing the motivation and influence of Moutai's high cash dividend policy in Kweichow Moutai,we take Kweichow Moutai's high cash dividend policy as a reference,and make relevant suggestions on high cash dividend behavior,including enterprises,regulators and investors.This paper advocates healthy and rational cash dividend sharing behavior for listed companies in China,as well as the willingness of enterprises to give back investors after good operation.At the same time,it is hoped that under the guidance of regulatory policies,the listed companies in China will become mature and rational in cash dividend distribution.Finally,it also advocates the idea of value investment for investors,rather than blindly pursuing short-term gains from speculation.