Study On The Motivation And Financial Influence Of Continually High Dividend Of Changjiang Electric Power Company

A-share listed companies in China,the early generally exists the phenomenon of "financing,dividend",therefore,in order to standardize capital market situation of share out bonus,since 2000,the China Securities Regulatory Commission began to pay attention to the listed company’s dividend distribution policy,introduced A number of guiding policy of cash dividend policy of listed companies to encourage enterprises to carry out the cash dividend,especially the securities and futures commission in 2008 issued "on the decision of the modified several provisions in cash dividends of listed companies" this provision,the cash dividend distribution of listed companies and refinancing qualifications.The formulation of a series of policies on the capital market in the listed company’s dividend situation has been greatly improved.Therefore,what form of dividend distribution and what kind of dividend policy should be taken into account by the company when formulating business policy and implementing business strategy.As the world’s first listed hydroelectric company,Changjiang Electric Power Co.,Ltd.has been listed since 2003.From 2004 to 2019,the accumulative dividend has reached 17 times(including 2 times in 2005),and the dividend rate has reached 63.21%.The high cash dividend has attracted extensive attention from all walks of life.Therefore,this paper uses the combination of theoretical research and case analysis to conduct an in-depth study on the motivation and financial impact of the persistently high dividend of Changjiang Electric Power.Firstly,this paper sorts out relevant literature and theories,sorts out various viewpoints of different scholars on dividend policy,motivation of high dividend policy and financial impact of high dividend policy,and summarizes the research ideas,research significance and innovation points of this paper.Secondly,the actual development of Changjiang Electric Power Company and the specific implementation of dividend policies in recent years are introduced.Based on the signal transmission theory,principal-agent theory,life cycle theory and motivation theory of dividend distribution,the motivation of the continuous high dividend of Changjiang Electric Power Company is explored from both internal and external aspects.It is found that the implementation of this dividend policy is affected by the factors such as the abundant cash flow,the capital demand of the actual controller and the direct investor,the introduction of the semi-mandatory dividend policy and the industry characteristics.Third,using event study method and analysis method of financial indicators,dividends on Yangtze power in each year after the short-term market reaction and financial conditions were analyzed,and the results show that the dividend policy did not get the positive response of the capital market,most of the annual cumulative excess yields falling in the rights assigned to implement public announcement in the future,And the company’s solvency,profitability and other financial indicators have fluctuated,there are negative effects.Finally,based on the above analysis,this paper puts forward relevant suggestions on the formulation and implementation of dividend policies from three levels of the company,the industry and the country,so as to promote the optimization of cash dividend distribution of Changjiang Electric Power and the highquality development of China’s capital market.However,due to the limitation of conditions,this paper is short of on-the-spot in-depth interviews and other future data in the research process,which needs to be improved in the future.