Research On The Motivation And Consequences Of SAIC’s High-paid Cash Dividend Policy

Dividend policy is one of the three major financial decisions of listed companies,It plays a vital role in the development of the company and has also become a hot topic that scholars have been discussing.Making a reasonable dividend policy is not only useful to attracting external investors,raising the company’s stock price,but also is the key to the long-term good development of the company.In recent years,under the vigorous supervision of CSRC,the level of cash dividends of listed companies increased significantly and there have been many high payout cases.Among them,there are many high-end parties who have transmitted the interests of major shareholders and damaged the interests of small and medium shareholders,this is clearly inconsistent with the original intention of the CSRC,so it is urgent to regulate the distribution of listed companies.The research on SAIC’s high-paid dividend policy is not only useful to improving the formulation of its cash dividend policy,but also can enrich the research on dividend policy.First of all,This article uses the literature research method to read and summarize the research of domestic and foreign scholars on dividend policy,and on this basis,the concept and theoretical basis of the relevant dividend policy are introduced.At the same time,this article analyzes the dividend situation of China’s listed companies from the aspects of dividend distribution,cash distribution level and influencing factors.Then this article introduces the basic situation of SAIC Group briefly and analysis its cash dividend policy for the past ten years.Secondly,Use case analysis method to analyze the motivations and consequences of SAIC’s implementation of high pay dividend policy,and concluded that its motivations mainly includes:First,there is sufficient financial support;Second,there is controlling behavior of major shareholders;Third,semi-mandatory dividend policy;Fourth,play a leading role in signal transmission.The consequences of its high cash includes:First,the company’s ability to repay its debts and growth has continued to decline;Second,the market has not responded well;Third,the value of the company has not improved.Finally,the following suggestions are made for the irrational formulation of SAIC’s current dividend policy:The first is to optimize the equity structure and form a check-and-balance mechanism.The second is to diversify the distribution of dividends.The third is to consider the company’s financial factors comprehensively.