| The cash dividend distribution policy refers to the dividend policy that an enterprise distributes its net profit to all shareholders in the form of cash after deducting the part used for the internal development of the enterprise.This kind of dividend distribution is not only a hot topic for scholars to study,but also is concerned by the majority of investors in the capital market in real life,because its influence is in many aspects.First of all,the most direct impact is the reduction of the company's own cash flow.If a company chooses to distribute a large amount of cash dividends when its financial status is poor,it is likely to face the risk of capital chain rupture.In addition,it also has an impact on the external market of the company.Cash dividend policy is often regarded as a barometer reflecting the company's business performance due to its signaling effect.Investors can judge managers' expectations on the company's future development prospects based on different payment levels,which will affect the company's reputation in turn.Therefore,the company should formulate a scientific and reasonable cash dividend policy based on its actual operating conditions.In recent years,the CSRC has introduced many policies to encourage enterprises to pay cash dividends,aiming to reduce the number of companies that do not pay cash or less,so that small and medium shareholders can share more of the company's operating results.However,this "goodwill" has also brought some problems,some companies have gone to the extreme and made unreasonable high dividend.Because the cash dividend policy is actually the result of the game among the shareholders,managers and creditors of the company,in order to maximize their own interests,In order to maximize their own interests,they are likely to use their power to infringe the interests of other parties in the process of making the dividend plan,and the small and medium-sized shareholders in a weak position are often the ultimate victims.Therefore,the formulation of cash dividend policy is influenced by various factors.Combining theoretical research with case study,this paper analyzes the high dividend behavior of Gibbet Co.,Ltd.Firstly,through reading a large number of literatures,this paper sorted out the views of different scholars on dividend policy,influencing factors of high dividend policy and their market reactions.Secondly,It understands the theories related to dividend distribution policy and explain the concepts of cash dividend and high dividend.Then,it introduces the case of "high dividend" of Gibbet,including the basic situation of the case company and dividend policy over the years.Meanwhile,it is compared with other companies in the same industry to summarize the characteristics of its dividend policies.Then,it makes a specific interpretation of the factors that will affect the high dividend behavior of the case company,such as the company's financial status,investment opportunities,equity structure,corporate governance and external environment,etc.,and expounds the impact of this behavior from the aspects of positive and negative.Finally,this paper summarizes the research,and puts forward corresponding suggestions for companies,small and medium shareholders and regulatory agencies around the cash dividend policy.On the basis of theoretical research and relevant case analysis,it can be found that the following factors will lead to the implementation of high dividend policy:(1)Strong profitability is the economic basis for the implementation of high dividend policy,without enough profits and funds,the enterprise can not afford high dividend;(2)When the growth rate of the enterprise is slow,the operating situation is relatively stable,there are a few "cash cow" products can provide a steady stream of cash flow and there are no good investment opportunities,the enterprise will also choose high dividend;(3)The shareholding structure will greatly affect the company's dividend policy.When most of the equity is concentrated in the hands of minority shareholders,they are likely to manipulate the dividend policy and increase the dividend payout rate to make their earnings full.This kind of behavior is more likely to happen when the internal governance structure of the company is not perfect and effective restrictions cannot be formed;(4)The signaling effect can deliver good news to the outside world,and affected by the relevant policies of the regulatory agencies,cash dividends have become the main role of profit distribution.At present,a positive dividend atmosphere is gradually formed in the securities market;(5)The choice of dividend policy will also be affected by the development of the industry.Through the analysis of Gibbet's high dividend behavior,we know that Gibbet 's profitability and cash flow are good,and the pressure of debt repayment is relatively small.In general,Gibbet can meet the basic conditions of paying high cash dividends.However,due to the ownership structure of "one share dominating" and the defects of the internal governance mechanism,the controlling shareholder is suspected of using the high dividend to transfer interests,which infringes the interests of small and medium shareholders and is not conducive to the long-term development of the enterprise.Therefore,this paper puts forward the following suggestions for improvement:(1)Make a reasonable dividend policy according to the actual situation of the company;(2)Optimize the company's equity structure,introduce more external institutional investors or increase the number of major shareholders,and form the equity balance mechanism;(3)Optimize the company's internal governance structure,enhance the independence of the independent directors and the board of supervisors,so as to give full play to the role of internal supervision;(4)Establish and improve the protection mechanism of small and medium-sized shareholders,introduce the cumulative voting system in the general meeting of shareholders,and enhance the voice of small and medium-sized shareholders;(5)Further improve the regulatory agencies on the cash dividend policy,strengthen the supervision of high cash dividend behavior of enterprises,and guide enterprises to establish a correct concept of dividend. |
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