| Cash dividend policy is an important part of financial decision-making of listed companies and an important way for company managers to transmit internal information to the market.The formulation of cash dividend policy is related to the long-term development of enterprises.The appropriate distribution of cash dividends can improve the confidence of investors to a certain extent,establish a better corporate image,and then promote the development of enterprises.However,the high distribution of cash dividends will also reduce the retained earnings of the enterprise,affect the cash flow of the enterprise,and may affect the daily operation,development and transformation,R & D and innovation of the enterprise,which is not conducive to the long-term development of the enterprise.When formulating the high cash dividend policy,whether the company is objective and reasonable,whether it achieves the expected effect and whether there is room for improvement is worthy of in-depth study.This research can not only bring some enlightenment to the development of the company,but also provide reference for companies in the same industry to formulate cash dividend policy.This paper takes FL company as the research object.Firstly,it expounds the research background,purpose and significance,collects the literature on dividend policy at home and abroad,and defines the research content and research methods of the paper.Secondly,it introduces the related concepts such as high cash dividend,and combs the dividend policy related theories such as "one bird in hand" theory,signal transmission theory and dividend catering theory,which lays a theoretical foundation for the later analysis.Thirdly,the situation of FL company is briefly introduced,and its dividend policy is determined as high cash dividend according to relevant concepts.Then,it analyzes the motivation and effect of high cash dividend.Based on a variety of theories,the motivation analysis found that FL company paid high cash out of the motives of catering to the needs of major shareholders,the possibility of tunnel excavation,the maturity of the enterprise life cycle,transmitting positive signals,covering up R & D difficulties,government support and loose tax environment.The effect analysis starts from the three aspects of the company’s financial ability,market response and enterprise value.In terms of financial capacity,the impact has two sides.According to the analysis of relevant indicators,it is found that high cash dividend improves the company’s profitability related to operation,but weakens part of the company’s financial ability.In terms of market response,based on the analysis of event research method,it is found that the market response of high cash dividend is limited.In terms of enterprise value,through the calculation and analysis of Tobin Q value,it is found that high cash dividend does not play a role in improving enterprise value.Finally,according to the motivation analysis and effect analysis,this paper summarizes the advantages and disadvantages of high cash dividend of FL company,and gives some suggestions.The advantages mainly include: high cash dividend can stimulate sales activities,high cash dividend has strong event driving in the short term,etc;The shortcomings mainly include: the existing possibility of high cash in tunnel excavation,which will weaken part of the company’s financial ability,the limited long-term market response,and the fact that high cash has not brought about the improvement of enterprise value.And put forward relevant suggestions,including: strengthening the supervision mechanism and introducing strategic investors,appropriately reducing the amount of cash dividend and dividend payment rate,reasonably balancing cash dividend and R & D innovation,adopting diversified dividend payment methods,etc.It is expected to provide suggestions for FL company to formulate dividend policy,and also provide reference for industry companies to formulate dividend policy. |
PDF Full Text Request