Case Study Of Fangda Special Steel Technology Co.,Ltd's High-end Cash Divided Policy

Dividend policy,as one of the important financial policies in modern enterprise management,can not only determine the retention and distribution of profits,but also affect the future development and operation of the enterprise.Compared with western developed countries,China's capital market still has a lot of shortcomings.The dividend policy of enterprises is relatively arbitrary and uncertain.From the early stage of the formation of China's capital market to cash-out,many companies in China's capital market have started to distribute high cash dividends.A reasonable high-paid dividend policy is worth promoting,because it can promote the healthy development of the company,and it can also send a good signal of the company's business to the capital market and investors,and attract external investment.However,the current behavior of imperfect Gao Pai will increase the company's financial risks,lose investment opportunities,and seriously become a tool for corporate major shareholder cash-out and group benefits delivery.Therefore,the research on Gao Paixian's dividend policy cannot be ignored any more.This article first uses the literature analysis method to review the high-end cash dividend policy domestic and foreign literature,understand that high-end cash dividend policy will be affected by financial conditions,equity structure,life cycle,investment opportunities,and internal capital markets and other factors.The current dividend response to the market is often judged by excess returns.Secondly,sort out the relevant theories and concepts of dividend policy,and lay a theoretical foundation for the research on the dividend policy of the other large and special steel company as the case.Thirdly,based on the analysis of Fangda Special Steel's profitability,debt repayment ability and cash flow to determine whether the company has sufficient capacity and cash for high cash distribution,the detailed analysis of the main causes of Fangda Special Steel's high cash dividend policy There are four levels,which are the equity structure,investment opportunities,corporate cycles,and the cost of capital within the group.Finally,through calculation and analysis of Tobin 's Tobin 's q-value and excess return rate,it was found that although the high dividend distribution policy has not been actively reflected in the market,the enterprise value of Fangda Special Steel in 2012-It is constantly improving between 2018.This paper combines theoretical analysis and case studies to find that China's corporate dividend policy lacks stability and sustainability,and high dividend payout policy will reduce the company's ability to resist industry risks.In addition,the high pay dividend policy will reduce the company's internal financing capacity and stimulate the demand for external financing,thereby increasing the debt pressure of the company.A dominant shareholding structure is also likely to become a means for large shareholders to transmit benefits andinfringe on the legitimate rights and interests of small and medium shareholders.Therefore,while formulating a dividend policy,listed companies should combine their own financial conditions and future development prospects to maintain the sustainability and stability of the dividend policy.In addition,we must pay attention to the choice of internal source financing,improve the company's equity structure,and protect the interests of small and medium shareholders.Based on this,we should formulate a scientific and reasonable cash dividend policy in order to establish a good corporate image and continue to enhance corporate value.