Research On High Cash Dividend Policy Of Listing Corporation In China

The policy of dividend distribution of listing Corporation is the strategy of the listing Corporation to make the after tax profits between the shareholders and retained earnings. As the core content of dividend policy, dividend policy is not only related to the interests of shareholders and creditors, but also affects the future development of the company, so it has received the attention from all walks of life. But due to the short time of the establishment of China’s securities market, the dividend distribution of listed company in our country lack of effective supervision mechanism, so most of the listed company’s dividend distribution policy is relatively chaotic, showing a typical short-term behavior characteristics: lack of continuity and stability, large shareholders to cash and other issues. And with China’s listed company to send the amount of cash gradually improve, phenomenon of high cash dividend also caused the attention, and GREE Electric appliances as a household electrical appliance industry for several years implementation on behalf of the high cash dividends, has caused the wide attention of the society. So in this paper, based on in the Gree Electric Appliances Co., Ltd., deep research on "high cash dividends dividend policy, has the practical significance.This paper summarizes the research results of the domestic and foreign dividend policy, and understand the status of domestic dividend policy based on, take literature research and case studies to the method, by using the theory of life cycle theory of dividend policy, "a bird in hand" theory, signal transfer theory etc., starting from the GREE electric appliances for many years the high cash dividend distribution of the phenomenon, the high cash dividends of Listed Companies in our country now dividend policy research. In the process of document collection, I understand the domestic and foreign scholars on dividend policy research methods and results, and a summary of finishing, for the writing of the paper lay a solid foundation. In the process of case study, through access to GREE Electric Appliances 2010-2014 financial report and prospectus, GREE Electric Appliances operation ability, profit ability, debt paying ability, growth ability index compared with the average level of household electrical appliance industry and comparative analysis of its dividend policy and Qingdao HAIER, and found that the cash dividend policy of GREE Electric appliances.Through the research of the dividend policy on GREE’s high, can we find the following problems of cash dividend policy: one is the GREE electric appliances for nearly five years of asset liability ratio has been maintained at a high level of 71%, indicates that the enterprise faces a higher financial risk, and enterprises in profit, and have no choice the return of long-term liabilities, but net profit achieved most issued to investors; the two is the lack of investment opportunities, GREE electric appliances in 2013-2014 years, foreign equity investment amount does not increase, but reduced 5 million 355 thousand and 400 yuan, foreign debt investment did not happen in the 2010-2014 years, a lot of money in the report that the company is a large number of idle funds the situation that in GREE electric appliances for which no accumulation of funds to find good investment opportunities. High cash dividend behavior is not conducive to the company’s future development, GREE Electric Appliances to achieve better development, has been implemented in a diversified development strategy, but the company did not profit from the retained for the diversified development of the company, so that is not conducive to enterprise’s long-term development.On the basis of analyzing the GREE electric high cash dividend behavior, put forward the following code of China listing Corporation dividends dividend policy suggestions: first, the cash dividend before the listing Corporation should be clear the stage of development, combined with the stage of development of the characteristics, develop a reasonable dividend policy; second, in the enterprise with the cash dividend conditions, determine the profit retained down to invest in other projects and the rewards of direct payment of the size of income to investors, to decide whether the payment of cash dividends; third, listing Corporation should improve their management level, to determine the optimal capital structure of the company, to determine the amount of dividend distribution; fourth, regulators should make the cash dividend system, standardize the listing Corporation cash dividend policy, protect the interests of minority shareholders.