Excess Cash Dividend And Major Shareholder Tunneling Based On The Perspective Of Capital Operation

Dividend policy is an important part of financial management,and cash dividend policy as the core content of dividend policy is an important factor related to the interests of company shareholders,the future development of the company and the orderly operation of capital market.In order to improve the company's cash dividend level and safeguard the interests of shareholders,the CSRC has continuously raised the refinancing standard linked to cash dividends.While the cash dividend level of listed companies has increased substantially,there have also been some over-allocation of listed companies.The excess cash dividends of these companies are not supported by good operating results and financial status.The excess cash dividends are actually to satisfy the interests of the major shareholders,but not conducive to the long-term development of the company,as well as the interests of small and medium investors.LANZHOU MINBAI's business performance in 2018 after deduction of non-profits was mediocre,but the company paid three cash dividends in a year with a high total amount,which was inconsistent with its profitability and financial status.LANZHOU MINBAI's high cash dividends are actually excess cash dividends,this case is representative.This paper takes LANZHOU MINBAI 's excess cash dividend as the research object,combines signal transmission theory,principal-agent theory and tunnel mining theory to analyze its motives and realization paths,and further analyze the adverse consequences and countermeasures of such phenomena.This paper takes The root cause of LANZHOU MINBAI's excessive cash dividends is that major shareholders are facing financial difficulties and financial constraints.In order to meet the financial support of excess cash dividend,LANZHOU MINBAI sold its equity in Shanghai Yongling Company and Shanghai Qanpeng Company through capital operation to obtain cash and profits.LANZHOU MINBAI's excessive cash dividends not only failed to get a positive market response,but also had an adverse impact on the company's performance and long-term development in the future,and also harmed the interests of minority shareholders.In order to meet the excess cash dividend,some listed companies have created "good" business performance and financial status through capital operation.The first major shareholder carries out excess cash dividend by means of capital operation,which is essentially tunneling the listed company and damaging the long-term interests of the company and the rights and interests of minority shareholders.The above phenomenon is not conducive to the healthy development of the capital market and should attract the attention of capital market participants and regulatory authorities,strengthen the supervision of excess cash dividends from the source,curb the tunneling of excess cash dividends by major shareholders,and improve the protection awareness of minority shareholders.