A Study On The Behavior Of Abnormal High Cash Dividends In Juhua

Compared with foreign mature capital markets,the capital market in China started late relatively,but it has high speed development.Before the year of 2000,the Chinese listed company had pool consciousness for the cash dividends,just a little companies distrusted cash dividends.As after 2000,China securities regulatory commission have published more policies about the interests of the minority shareholders,then many listed companies began to pay attention to the cash dividends,so more and more companies send the cash dividends now,but some abnormal phenomenon turned up,and this phenomenon was more and more serious,including the abnormal high cash dividends.The abnormal high cash dividends is a abnormal behavior that the listed company disregard their own management ability and the cash holding capacity to distribute the high cash dividend,then this behavior is considered as a kind of means by academic circles that the controlling shareholders use their control to damage the medium and small shareholders interests to realize their own indemnification.Based on this,this paper summarized the related theories about dividend policy research,building a framework about the theoretical analysis.In this paper,I study the abnormal high dividend in Juhua corporation and analyze the case by case study method.First I found the motive of the high dividend in Juahua include the controlling shareholder to seize the interests,transfer good signal and Local government make up the balance of fiscal revenue and expenditure.Second I analysed how this behavior influence the management of Juahua.I used the event study method to analyse the market reaction,but the result was not good.Then I analysed the manage performance and found this behavior is disadvantageous for the promotion of market value and the development.In the whole process of the case analysis,financial index analysis and comparative analysis were used to make further efforts to highlight the problems of the abnormal high cash dividend.Finally,this article put forward some relevant suggestions according to the reason and influence about this abnormal behavior.Maybe it is use to regulate the cash dividend of listed company,and to provide certain reference basis for related regulatory authorities to take positive and effective measures,to promote our country securities market and capital market operate better and the equality of all shareholders.