Research On The Causes And Consequences Of Abnormally High Payout Cash Of A-Share Listed Companies

Due to late establishment of A-share stock market,individual investors account for a relatively high proportion of investors,the legal system is still not perfect,etc,the current value investment concept has not been generally accepted and recognized by the majority of investors,resulting in the prevalence of opportunism:investors were not keen on cash dividends for a long time,while paid more attention to short-term benefits.In the past few years,the China Securities Regulatory Commission has continuously issued policies to strengthen the relationship between cash dividend distribution and equity refinancing,to guide the healthy development of the capital market,and popularize the concept of value investment to investors.Under the guidance of these policies,some listed companies which did not pay much attention to cash dividends in the past gradually realized the necessity and importance of cash dividends,and gradually increased the ratio and frequency of cash dividends.However,under this background,the primary purpose of the cash dividends carried out by some listed companies is not to share operating results,but to help the actual controllers of listed companies complete capital operations by infringing on the interests of small and medium investors.These behaviors have brought a very negative impact,and it has also affected the reputation and sustainable development of listed companies themselves.This paper first sorts out the research results related to dividend policy and its influencing factors and then compares the financial indicators of companies with abnormally high dividends and non-abnormally high dividends among A-share listed companies from 2012 to 2021.This article chooses Ningbo Huaxiang,which has very abnormal cash dividends in 2021,as the research object.Through horizontal and vertical comparisons of its cash dividend distribution levels,we analyze Ningbo Huaxiang’s abnormally high cash dividend behavior and then analyze the abnormally high dividends.Finally,we also investigate the causes and consequences of this behavior.Based on the analysis of the reasons for Ningbo Huaxiang’s abnormally high distribution,we believe that Ningbo Huaxiang’s motivation mainly includes the capital needs of the actual controller’s capital operation.When analyzing the consequences of abnormally high cash distribution,the event research method and financial analysis method are used.The event research mainly focuses on the judgment of abnormally high cash distribution,the income obtained by the actual controller in the abnormally high cash distribution,and the stock price changes of Ningbo Huaxiang.The financial analysis mainly evaluates the impact of abnormally high cash distribution on Ningbo Huaxiang from the three aspects of Ningbo Huaxiang’s solvency,profitability,and operating ability.Finally,this article hopes to provide a reference for some practical problems in the A-share capital market based on the case analysis of Ningbo Huaxiang:(1)Help Ningbo Huaxiang and other similar listed companies formulate a sustainable cash dividend distribution policy,which is conducive for maintaining the company’s image and reputation.(2)Help Ningbo Huaxiang and similar listed companies solve the second type of agency problems and propose some preventive measures.(3)Provide suggestions for the further improvement of relevant laws and regulations,so that cash dividends will not be reduced to a tool for the actual controller’s capital operation,but will truly return to the essence of giving back to investors.The innovation of this article is to summarize and analyze the difference between the financial indicators of A-share listed companies with abnormally high distributions and non-abnormally high distributions from 2012 to 2021.The case study of Ningbo Huaxiang enriches the abnormality of listed companies.Simultaneously,it puts forward corresponding preventive measures and coping strategies,which are conducive to guiding and stabilizing the operation of the capital market and spreading the concept of value investment.However,affected by the inherent limitations of the case study,this paper cannot find out all the reasons for the abnormally high cash distribution in the A-share market,and it cannot fundamentally avoid the abnormally high cash distribution behavior of listed companies.