Study On High Dividend Policy Of Gree

The choice of the dividend policy of the listed company plays a important role in its future development and the maintenance of a stable order in the capital market.In recent years,guiding listed companies to choose a more reasonable dividend policy,and attaching importance to the protection of investors’ interests Occupies an important position in our country’s economic research.With the improvement of relevant national policies,the dividends paid by listed companies has gradually increased,and the behavior of high dividends has attracted high attention of shareholders and the China Securities Regulatory Commission.Scholars around the world have researched on the reasons and effects of the adoption of high cash dividend policy from many different sides,but they are more concentrated in the field of empirical research.After summarizing and analyzing previous research results and learning the relevant theories of dividend policy,I took Gree Electric’s high payout phenomenon as the research object,combined with the case study method,to study the factors influencing Gree Electric’s current behavior and the effects of the current behavior.By summarizing Gree Electric’s cash dividend distribution over the past few years and comparing it with related companies and historical data,it is found that Gree Electric has a high payout behavior.Through analysis,it is found that Gree Electric’s high cash dividend comes from ample free cash flow,good financial status,and is linked to the life cycle,ownership structure and capital structure.Simultaneously,Gree implements a high proportion of cash dividend policy due to the influence of national macro policy regulation and technological development.As for the effects of high cash dividend phenomenon current actions,this article discusses both positive and negative effects.The positive side involves upgrading the efficiency of the investment,inhibiting the production of inefficient investments,and improving the response rate of invested capital;increasing investors’ confidence in the company’s business growth;promoting the promotion of the company’s value,indicating the company’s good performance and growth trend in the future;at the same time,it is also conducive to protecting shareholders’ rights and interests;reducing agency costs;and promoting relationships with investors.The research results are consistent with the dividend theories listed in this article.On the negative aspects,the article lists the financial risks created by the decreasing of free cash flow,and proposes preventive measures against the risks.On the one hand,the company can reduce the risk caused by a single loan financing by adjusting its debt structure and broadening financing channels.On the other hand,the awareness of risk prevention needs to be run through all aspects of the company’s production and operation,the possibility of risk also needs to be reduced.It is hoped that this research can provide useful experience and message for related companies to draw up and carry out high dividend policy.