An Analysis Of The Causes And Economic Consequences Of Abnormal Distribution Of Gree

As one of the three major financial activities of enterprises,dividend distribution is also an indispensable part in the process of financial management.It not only determines the future direction of enterprises,but also influences the changes and development of the whole stock market.Among them,cash dividend distribution has always been paid attention by regulatory authorities and investors.Because China's capital market is not mature enough,some enterprises have the problem of abnormal payout,which is usually manifested in two situations: abnormal high payout and abnormal low payout.At present,a large number of scholars at home and abroad have studied the dividend distribution and related issues of enterprises and drawn many valuable conclusions,but most of them focus on the normal dividend distribution behavior.However,there are relatively few studies on the current behavior of the abnormally high sect,especially the abnormally low sect.Gree Electric Appliances has always been a "big divider" in the hearts of investors,operating in a good and continuous dividend more than ten years.However,in 2017,Gree Electric Appliances did not pay dividends,which caused a strong reaction from the public.So this article with the examples of gree electric appliances,with its abnormal group events of 2017 as the research object,combined with its life cycle,operating conditions and development strategy,with case analysis,comparative analysis and event analysis,focus on analysis in 2017 abnormal events may now the motivation and economic consequences,and put forward relevant Suggestions,expect to help enterprises to standardize the dividend distribution behavior,this also is the purpose of this study.This paper firstly analyzes the dividend distribution of household appliance industry and Gree Electric Appliances in each year,and then,combined with the life cycle,observe whether there are abnormal dividend policies in household appliance industry and Gree Electric Appliances over the years,so as to judge whether Gree's non-dividend behavior constitutes abnormal dividend distribution.Secondly,through case analysis,the motivation of gree Electric Appliances' abnormal cash distribution is classified into the following five points,in order to meet the challenge of international competition situation and respond to the call of the government's "2025 plan";Reserve funds for life cycle replacement;The need to prevent debt risk;The need to reserve funds for a diversification strategy and to capture high-quality investment opportunities.The economic consequences are as follows: in the short term,it has caused negative market reaction,negative impact on corporate value,negative impact on corporate reputation and enhanced ability of sustainable development.Through theoretical analysis and case study,the following conclusions can be drawn: Dividend distribution policy of Gree Electric Appliances is influenced by the law of life cycle,its own debt structure,diversification strategy and investment opportunities;The positive effect of abnormal cash distribution is to enhance the research and development ability and innovation level,and accelerate the diversification process;The negative consequences of abnormal cash flow are stock price decline,enterprise value decline and corporate reputation damage.To sum up,reasonable Suggestions are put forward.Enterprises should pay attention to continuity when distributing dividends.Increase the diversity of dividend distribution and reduce the capital pressure brought by cash dividend;Make long-term dividend plan and improve dividend advance mechanism to reduce the probability of sudden abnormal payout.It is expected to provide advice on dividend policies for similar enterprises and provide reference for investors,so that enterprises and investors can achieve a win-win situation in terms of dividends.