Research On The Motivation And Economic Consequences Of HY Auto's High Cash Dividend Policy

Dividend policy is,in a simple sense,a listed company’s feedback system to investors after financing the market.Its formulation directly affects the listed company’s ability to continue financing,which directly determines whether the company has sufficient capital to maintain its operations.Therefore,dividend policy has always been a hot issue in China’s capital market research.In recent years,the form of return of investors from the economic market has gradually changed from high sending to high cash dividend.More and more listed companies have adopted high cash dividends to attract investment.The high cash dividend policy has caused a high degree of capital market.attention.A benign high cash flow can have a positive impact on the company and the securities market,but a non-benign high cash flow will distort the company ’s original intention of giving back to investors.A large amount of cash outflows will cause companies to lose good investment opportunities and increase financing costs Damage to corporate value and adverse market reactions.Therefore,high cash dividend phenomenon is not a good banner for the economic market.High cash dividend behavior should be analyzed in conjunction with its implementation motivations and economic consequences.Is there any unfavorable motivation behind the behavior that hinders the company ’s development,and can it enhance corporate value and performance Whether these will bring positive market responses is worthy of study.This article first sorts out the domestic and foreign research results,related concepts and theoretical foundations of the high-pay cash dividend policy,and establishes a theoretical framework for the high-pay cash case study.Then,taking HY Auto as a case study object,first briefly introduced the case background of its cash dividend policy,and then analyzed the cash dividend payment level in the past five years,and proposed that HY Auto currently adopts a high dividend policy View.On the basis of clarifying the high dividend payout policy adopted by HY Auto,this paper combines the agency cost theory,life cycle theory,signal transmission theory and the benefit embezzlement hypothesis to analyze the internal and external drivers of the high cash dividend.The changes in corporate value and market response have studied the economic consequences of HY Auto ’s high dividend policy over the past five years.By studying the motivation and economic consequences of HY Automobile’scurrent behavior,this paper finds that satisfying the interests of the controller is the main reason for its high school’s current behavior.At the same time,the current behavior of HY Auto’s high cash dividend policy is also a performance that caters to the dividend preference of small and medium shareholders,and the company’s maturity period also constitutes the objective condition of high cash dividend.From the perspective of external motivations,the need to send positive signals to the market,respond to the guidance of national policies,and constrain the industry’s competition also determine the current behavior of HY Auto.However,the high school’s current behavior formed under these motives has not achieved good economic consequences.The decline in corporate value and poor market response indicate that the company’s high school’s current behavior still needs to be compensated and improved.Through the research of the company,this article puts forward corresponding decision-making suggestions for the listed company to formulate cash dividend policies,that is,to improve financial support capabilities,introduce small and medium shareholders who value long-term interests,scientifically formulate a dividend plan based on their own actual conditions,and call on relevant government departments Improve and supplement the laws and regulations on cash dividends.