Research On The Motivation And Effect Of S Company’s Cash Dividend Policy

Since 2000,the CSRC has successively issued a series of semi-mandatory dividend policy to improve the low dividend payment rate and unstable cash dividend in China’s capital market,and the cash dividend has received extensive attention.As a basic industry,the development of chemical industry is related to the national economy and people’s livelihood.Under the background of China’s economy entering a new normal,supply-side structural reform and industrial transformation and upgrading,the chemical industry is facing new opportunities and challenges.How to formulate a dividend policy that not only conforms to its own reality and promotes enterprise development,but also can give back to investors to a greater extent,and at the same time meet the industry regulatory requirements is particularly important for chemical enterprises.As a benchmark enterprise in the chemical industry,Company S’s cash dividend behavior is particularly prominent,with good continuity and high payout.It is of great significance to study its dividend behavior.The purpose of this study is to analyze the antecedents and consequences of the cash dividend policy implemented by S Company,a benchmarking enterprise,and to comprehensively evaluate its cash dividend policy.Based on the results of the analysis,suggestions are made to address the deficiencies from the perspective of ensuring the implementation of the cash dividend policy and maximizing the implementation benefits.Based on classical theories such as signal transmission theory,this paper makes an in-depth study of dividend policy of S Company by case analysis.First,it summarizes the following characteristics of dividend distribution: the dividend payment method is mainly cash and has good continuity;Lack of stability of dividend payment rate;High payouts in most years.Secondly,we understand that profitability,growth ability and cash flow provide good financial support for its continuous cash flow.Meeting the requirements of regulatory policies,catering to the interests of controlling shareholders,matching the company’s investment strategies,reducing agency costs,sending good signals to the market and government subsidies are the non-financial drivers of the company’s cash dividend policy.Then,it analyzes the late effect of S Company’s cash dividend policy from three aspects: market response,stock price volatility and corporate value.Finally,from the perspective of ensuring the implementation of the Company’s cash dividend policy and maximizing the benefits of its implementation,this paper makes a comprehensive evaluation of Company S’s cash dividend policy and puts forward some suggestions.It is hoped that this will provide inspiration for listed companies in China,especially companies in the same industry,to implement the cash dividend policy,and also provide some reference for regulators to improve the relevant policies and small and medium-sized investors’ decision-making,so as to promote the healthy operation of China’s capital market.