Study On The Motivation And Economic Consequences Of Luzhou Laojiao High Cash Dividend

Dividend policy is an important part of a company’s financial decision-making,plays a major role in the future prospects and sustainable development of the company,and is directly related to the interests of investors.Since 2001,the CSRC,SASAC and other departments have successively issued many documents related to dividend distribution,constantly updating,replacing or proposing new relevant regulations on dividend distribution,so as to reasonably guide the dividend distribution of Listed Companies in China.Strengthening and refining the norms of dividend distribution behavior of listed companies and promoting and maintaining the healthy and orderly development of China’s capital market is an important task in China’s economic research.The document optimizes and improves the relevant system regulations and standardizes the distribution behavior of Listed Companies in China’s capital market.In recent years,under the active guidance of relevant departments,China’s listed companies are increasingly inclined to carry out cash dividend distribution,and the amount used to implement cash dividend distribution is also increasing.Luzhou Lao Jiao is a typical representative of the Baijiu liquor industry.It has insisted on dividend and has always maintained high dividends since it was listed.It has certain practical significance to study the high school of Luzhou Laojiao.Based on the analysis of research results at home and abroad,this paper selects the research object as Luzhou Laojiao,a Baijiu industry company,adopts case study method,literature study method and event study method.Starting from the theory of dividend distribution,at first,it introduces the basic situation of Luzhou Laojiao and the dividend policy of previous years and compares and analyzes it with other companies in the same industry,and then explores the driving forces affecting the dividend distribution of Luzhou Laojiao,and then calculates the cumulative excess yield through the event research method to study the short-term market response and analyze the long-term impact of high payouts.The main research conclusions are:(1)the driving factors affecting the distribution of dividends in Luzhou Laojiao are mainly the equity structure,government policies,financial level and industry factors;(2)the short-term market response after the cash distribution is positive;(3)the long-term impact of the cash distribution is pros and cons,and the transmission of good signals to establish the company’s image while affecting the company’s solvency and growth ability.Finally,suggestions and prospects are put forward for the reasonable distribution and management of dividends of listed companies.