Analysis Of Cash Dividend Capacity Of DianGuang Media

Chinese stock market changed frequently in 2013.National regulators issued a series of laws to guide and promote listed companies to implement cash dividends, and at the same time the listed companies in China are facing heavier pressure of cash dividends. The government, in order to develop national economy, regarded cultural industry as a pillar industry. To complete the basic establishment of modern cultural industry system and market system, significantly improve the added value of cultural industry of national economy and gradually grow into a pillar industry of national economy by the end of the 12th five-year have been put forward in the 12th five-year plan outline clearly. Thus, this article selects the media industry as a research focus. And as an example, this paper will analyze the DianGuang Media’s cash dividends.The company’s cash dividends policy is influenced by many factors, such as the legal restrictions, the company, shareholders and other restrictions. Free cash flow influences the company’s cash dividends capacity. Therefore, this article will measure the DianGuang Media’s equity free cash flow, accumulative total free cash flow, cash dividends amount and the cumulative cash dividends since it is listed to discover DianGuang Media lacks of ability of cash dividends since 2011.Then, this article selects 7 listed media companies, which is similar to DianGuang Media in industry scale, to analyze their ability of cash dividends. In the end, this paper estimates the media industry ability of cash dividends by taking the average of the seven companies’ indicators. Article finally finds that China’s media industry has the ability to cash dividends at present, and DianGuang Media’s ability of cash dividend is below the industry average, mainly influenced by the strategic of the integration of wired network resources of Hunan province. In the next few years, DianGuang Media will enhance its capability of cash dividends and its operating net cash flow will increase with the establishment of cable network market monopoly in Hunan province.