Research On The Causes And Economic Consequences Of N Company's Ponzi Dividend Behavio

Due to China’s long-term lack of understanding of returns to shareholders of listed companies,the cash dividend distribution situation does not look good,so,regulators gradually on the specification,however,this has caused some companies to ignore its own bonus ability,only to comply with regulatory requirements,as well as the realization of the realization of the interests of the shareholders,to produce the ponzi dividends this special phenomenon.This kind of behavior means that the company pays dividends by external financing or borrowing money in the absence of dividends,which is a way to over-distribute profits,which will have a negative impact on the company’s finance and sustainable operation.On the surface,Ponzi dividend is a reward for investors.In fact,many companies do not have enough funds to support listed companies to adopt this dividend policy and pay cash dividends to shareholders through borrowing or absorbing capital.Therefore,the company has formulated and passed this obviously unreasonable dividend policy.What are the economic consequences for businesses? Is it ethical?This paper starts from the phenomenon of Ponzi dividend,which is increasingly concerned by experts and scholars at home and abroad,adopts the method of combining relevant theoretical analysis and case study,takes the abnormal dividend event of N Company,one of the top 500 auto parts companies in the world,as the research object,and takes all kinds of contradictory practices under the huge dividend such as private secondary issuance as the starting point.From the analysis of the characteristics of the internal structure of the enterprise itself to the game of various interest subjects behind the excess dividend.This paper compares this case in detail from the perspective of the concept and judgment of Ponzi dividend,explains the abnormal dividend of this case and its subsequent behavior one by one,and confirms the secret and inside of N Company’s dividend with the agency cost theory and stakeholder theory.Using Stata system for empirical analysis,with the corresponding financial indicators to further demonstrate how such dividends of Company N have a certain negative impact on the enterprise,and invisibly help the major shareholders to benefit.