A Research On "High Transfer" Stock Dividend Of SEC Electric Machinery Co.,Ltd.

Dividend policy is one of the important financial decisions of listed companies,which directly affects the rights and interests of investors,has a long-term significance for the future development of the company,and can also contribute to the construction of a well-ordered capital market.The growth of listed companies can not be separated from the implementation of dividend policy,and the healthy development of capital market can not be without a standardized and reasonable dividend distribution.How to arrange the retained earnings and dividend distribution reasonably is a problem that the managers of listed companies attach great importance to.In recent years,the "excessive transfer" of Listed Companies in China is common,and "high transfer" is no longer the dividend policy chosen by companies with good operating conditions as it was at the beginning of implementation.SEC Electric Machinery Co.,Ltd.(hereinafter referred to as SEC)is a manufacturing company which has been listed for five years and mainly produces and sells electrical machinery and equipment.It has three consecutive transfers in a year,and the high total number of transfers has attracted the attention of the society.Therefore,this paper takes the dividend policy implemented by SEC as the research object,and analyses the rationality,motivation and financial impact of dividend policy formulation.Firstly,this paper combs the relevant concepts and theories of dividend policy,such as signaling theory,liquidity theory and dividend catering theory,the impact of dividend policy on corporate finance,and the internal and external factors of dividend policy formulation.This paper summarizes the implementation of the dividend policy of SEC in recent years,and compares it with the dividend policy of Listed Companies in the same industry.Then,it studies the rationality,motivation and financial impact of the dividend policy of SEC.It is found that the company's ability to pay is declining year by year,the liquidity of assets is relatively poor in the industry,the profitability is weak,and the gross interest rate of the main products is declining year by year,and the future growth is also poor.In order to enhance the liquidity of the company's stock,expand the scale of equity and help large shareholders to reduce arbitrage,this dividend policy has been implemented.The financial impact is analyzed in terms of quantity and quality.After the implementation of the dividend policy,the number of assets of the company has decreased,the quality of assets has not improved,the ratio of shareholders' equity has decreased,the financial elasticity has deteriorated,the amount of cash flow has decreased,and other financing methods can be considered.Finally,it gives some suggestions on making a scientific and reasonable dividend policy for SEC.