China Shenhua High Cash Dividend Policy Case Research

As a way of disposing of undistributed profits,cash dividend distribution has received great attention from the Securities Regulatory Commission in recent years.The China Securities Regulatory Commission has issued a series of policy documents to continuously normalize the cash dividend distribution system of listed companies in China.The adoption of an appropriate cash dividend distribution policy will help the company to disseminate good growth information,maintain investors' attractiveness to the company,promote the healthy growth of the company,and stabilize the development of the securities market.Since the introduction of the "Cash Distribution Guidelines" by the Shanghai Stock Exchange in 2013,the distribution of cash dividends in Shanghai has shown stability and continuity.At the same time,there have been a number of listed companies that have made high cash dividend distributions.Dividend distribution policy is formulated,it is necessary to consider the dual factors of the return to shareholders and the need for the future development of the company.The reasonable control of retained earnings and the amount of dividend distribution is an important part of the decision-making of listed companies.With more and more listed companies adopting high cash dividend distribution,it is of great significance to strengthen the research on the high cash dividend distribution policy of listed companies.China Shenhua,as the first domestic coal company to adopt a high-end cash dividend distribution policy,carries out relevant researches on its high-end cash dividend policy,which can provide reference for other companies in China that have high cash dividend policy requirements.First of all,this article defines the relevant concepts of high cash dividends,reviews and combs relevant theories at the same time,and provides theoretical basis for the following research.Secondly,statistics on the dividend distribution of A-share listed companies from 2011 to 2016 are carried out,seeing the status of the overall dividend distribution of A-share listed companies in recent years,the status of cash dividends paid by companies of different nature,and the status of the implementation of high-end cash dividend policy.Besides,taking China Shenhua as a typical case,through the analysis of the company's dividend policy in recent years and the status of the overall dividend distribution of the industry,the article discusses the motive of implementing high cash dividend policy form the external regulatory and policy environment,the macroeconomic situation and the development of the industry,as well as the internal financial situation,shareholding structure,corporate strategy,signal release,and investment opportunities.Finally,this article starts with five aspects: government policy formulation,overall industry development,financial status,shareholder wealth,stock returns,and high cash dividends for China Shenhua.The effect of the implementation of the policy was analyzed.Through the study of the high cash dividend policy of China Shenhua,the article draws the following conclusions: First,in recent years,the coal industry is in a period of overcapacity and capital investment has been reduced.The cash flow is a basic reason why adopting high cash dividend policy is a success in China Shenhua.Secondly,Upon ensuring the healthy and sustainable development of the company,it separates regular cash dividends from special dividend distributions and ensures the smooth implementation of the high cash dividend policy.The active implementation of macro-policy and industry transformation is the key to the reform of state-owned enterprises.The phased achievements of China Shenhua's transformation and development can provide empirical evidence for the reform of state-owned enterprises and the transformation and development of traditional industries.This paper aims to study the motivation and effect of the high-end cash dividend policy through the typical case of China Shenhua,and provide the basis for the formulation of relevant policies of government departments and the decision-making of business operators.