Analysis Of The Influence Of Juhua Group's Super Capability Cash Dividends

Dividend policy decision,as one of the core activities of modern corporate financial management,not only coordinates the balance of interests among different shareholder groups,but also affects the future business development and corporate value.Most of the dividend policies implemented by listed companies in the more mature capital markets in the west are stable and sustainable,while China's capital market did not establish its embryonic form until the 1990 s.Before 2000,China's listed companies did not have a strong awareness of cash dividend and almost did not have the idea of giving back to investors.Subsequently,the state issued a series of policy adjustments.Although these mandatory measures have improved the phenomenon of dividend non-distribution in China to a certain extent,the increase in cash dividend distribution ratio has also been accompanied by an increase in the current status of abnormal dividend distribution,and super-ability dividend distribution is one of the abnormal dividend distributions.Through analysis,it is found that super power distribution will reduce the retained earnings of the enterprise,thus promoting the enterprise to conduct external financing through other means and damaging the enterprise's sustainable development ability.Taking Juhua shares as an example,based on the agency cost theory and dividend policy signal transmission theory,this paper analyzes the reasons and influence of Juhua shares' super power faction's current behavior.In the process of case analysis,this paper uses financial index analysis and comparative analysis to show more directly the adverse consequences caused by the problem of super ability cash distribution.The analysis found that the problem of super-ability cash distribution is an effective means for controlling shareholders of enterprises to realize the purpose of profit transmission and subsequent refinancing under the policy environment of external " semi-mandatory" dividend policy.Then,this paper analyzes the influence of super power dividend from the aspects of market response,corporate governance and shareholder wealth,and finds that this irrational dividend policy does not send positive signals to enterprises and brings negative market response.At the same time,the current super power faction will increase the financial pressure of the company and inhibit the development and innovation ability of the enterprise.In addition,from the point of view of shareholders' wealth,superpowers are currently a possible means for controlling shareholders to legally transfer wealth,but they damage the rights and interests of other small and medium-sized shareholders.Finally,from the perspective of external regulators,enterprises themselves and investors,this paper gives relevant suggestions in combination with the reasons and influences of the super power distribution of enterprises,and tries to restrict the current behavior of the super power distribution of listed companies to a certain extent,so as to promote the healthy development of China's capital market.