On The Relationship Between Dividend Distribution Policy And Sustainable Growth Of China Shenhua

As one of the three financial decisions of the enterprise,the dividend policy has received extensive attention from the academic circles.However,the formulation of the dividend policy of listed companies in China still has a large randomness.For the company,the formulation of the dividend policy does not have the optimal dividend policy once and for all.The enterprise needs to choose the most suitable dividend policy according to its actual operation.Pursuing growth is the instinct of listed companies.In a complex market environment,how to make listed companies better develop is also a concern of managers,because too fast or too slow growth is not good for the company’s sustainable growth.The company’s dividend policy and sustainable growth are mutually influential and mutually reinforcing,but at present the academic research on the relationship between the two is less and not deep enough.Therefore,it is of great significance to study the dividend policy and sustainable growth of listed companies in China.In order to explore the relationship between China Shenhua’s dividend payment and corporate growth,this paper firstly based on the dividend policy theory and sustainable growth theory,elaborated the connotation of the two and several commonly used sustainable growth models,and the models.The similarities and differences are elaborated.Then,under the premise of understanding the basic situation of China Shenhua,we carefully analyzed the dividend policy of China Shenhua in the last ten years,and according to the actual situation of China Shenhua,the degree of agreement with the assumptions of each model,Selecting Higgins’ sustainable growth model,combined with the company’s relevant financial data,calculated the company’s sustainable growth rate over the years,and analyzed the results.then the paper came out that China Shenhua’s dividend policy and sustainable growth There is no obvious negative correlation between the two,which is inconsistent with the theory of sustainable growth.This paper analyzesthe impact of such dividend policy on the growth of enterprises from the perspective of internal sources of funds and future investment opportunities.Then analyze the relationship between China Shenhua’s dividend policy and sustainable growth and the impact of this relationship on China Shenhua,and then raise some problems in the process of formulating China Shenhua’s dividend policy.Finally,based on the above analysis,this paper proposes the issue of China Shenhua in the process of formulating dividend policy in the future.In the future,China Shenhua should combine with the sustainable growth of enterprises in the process of formulating dividend policy,and the formulation of dividend policy should pay attention to the future investment opportunities of enterprises to improve the efficiency of capital use,and also pay attention to the protection of rights and interests of small and medium shareholders.This paper uses case study method to analyze China Shenhua’s dividend policy,and draws conclusions through research: First,there is no obvious negative correlation between China Shenhua’s dividend policy and sustainable growth,which is inconsistent with the sustainable growth theory.Second,the sustainable growth rate provides a reference standard for the growth rate of China Shenhua.Too fast and too slow growth is not good for enterprises.The main innovations of this paper are two points.One is to enrich the case study results of the dividend policy,and the other is to combine the dividend policy and the sustainable growth theory to analyze the actual problems,from the perspective of the internal sources of funds and future investment opportunities.The relationship between the two breaks through the defects that the predecessors either separated the two to analyze the problem or did not contact the actual.