Research On The High Dividend Policy Of Midea Group

The dividend policy is a core financial policy of the company.The company distributes the realized profits to shareholders and investors.This policy not only reflects the operating and financial status,but also has an impact on the company’s future development.Therefore,it also causes regulatory authorities and shareholders.,The common concern of creditors and investors.In the past two decades,the China Securities Regulatory Commission has gradually introduced a series of policies and measures in response to various problems in my country’s securities market.More and more listed companies are participating in dividend distribution,but there are still companies that make profits at the end of the year but do not pay dividends or only pay dividends.A company with a very low dividend.According to data,most of my country’s listed companies disclose dividend plans a few months after the end of the year,but special companies such as "cash cows" and "iron cock" also exist.At the same time,in the Chinese stock market,listed companies that implement high cash dividends have always been welcomed by the market,while the stocks of listed companies with low profits and low dividends have been ignored by the market for a long time.This phenomenon will damage the interests of companies with low cash dividends and some investors.This article is divided into seven parts.The first part is the introduction.It uses the literature research method to sort out the relevant literature and conclusions in this field at home and abroad,and then summarizes and analyzes the background and significance of the topic.Then introduce the concepts and theoretical basis involved in the article,as well as the influence mechanism of Gao Paixian’s financial effect.The third part introduces the situation of the case company and the development of the industry,the dividend distribution plan of Midea Group over the years,and analyzes that its high payout has the characteristics of continuity and stability;and uses the case study method to do with the Haier Zhijia in the same industry.Based on a detailed horizontal comparison,through comparative analysis,it is found that Midea Group has high cash distribution,high cash distribution frequency,and characteristics of continuity and stability.Next,I studied the external and internal motivations of the high dividend policy,and concluded that: meet the requirements of listed companies’ dividend policy;deliver a good company signal to the market;support the excellent business performance of the company;the dividend policy matches the life cycle of the company;caters to the company The interest needs of controlling shareholders.The fifth part is to analyze the financial effects caused by the high cash dividend policy.It is concluded that the market response after the implementation date has produced a positive effect.The value of the enterprise during the high cash dividend has also been improved.The high cash dividend also has a restraining effect on excessive investment.But it also leads to an increase in financing costs.Finally,I write suggestions on the improvement of Midea Group’s high dividend policy and the conclusion of this article.This article aims to promote enterprises to formulate reasonable dividend policies,which will help investors to invest rationally and the securities market to develop more healthily.It is suggested that when listed companies formulate dividend policies,they should comprehensively measure the company’s financial status,future development direction,investment opportunities,company life cycle,industry environment and other factors;investors should maintain correct investment concepts;regulatory authorities should guide listing The company distributes dividends rationally and establishes a healthy and standardized market environment.