Research On The Motives And Economic Consequences Of Sino-foreign Joint Venture Distributing Abnormal High Cash Dividend

After the split-share reform,the equal shareholder-right basically has been achieved.And the major shareholder's single high dividend doesn't encroach the interests of minority.However,the highly centralized ownership structure still exists,especially for Sino-foreign joint ventures,foreign major shareholders use their core technology to influence the enterprise's cash dividend decision in order to meet their own self-interest,which may affect the joint venture's sustainable development and then may damage the interests of other stakeholders.Based on this,this paper selects the representative foreign equity listed company-Jiangling Motors Co.,Ltdt to research it's motives and economic consequences of distributing abnormal high cash dividend.As for motivation,first,management implementing blinkered strategy bring capital surplus which takes financial basis for abnormal high cash dividend.Second,Ford dominate abnormally high dividends and China's major shareholders can only compromise on this decision for they are subject to Ford's core technology.Third,the Jiangling also have the incentive to boost share prices with abnormally high dividends.As for economic consequences,abnormal high dividend is bad for the new energy strategy transformation process and cause the decline of enterprise value.And there is a negative effect of the long term market reaction.From the research of the Jingling's motives and economic consequences on abnormally high dividends,this paper finds that technical resource is the influential factor in the operation of Sino-Foreign joint venture mode.Chinese shareholders should not only focus on shareholding ratio,but pay more attention to increase the independence of core technology.Secondly,the Enterprise Strategic Fund arrangement in the maturity stage is very important to its subsequent development,the enterprise should make the trade-off between avoiding the risk and realizing the sustainable operation in the future,reasonably formulating the cash dividend policy.Finally,the abnormally high dividend of enterprises may become a tool for investors to speculate,minority shareholder should establish a correct investment concept to guard against investment risk.