Research On The Motivation And Economy Results Of High Dividend Policy

In China,the capital market in the first half of each year attracts investors’ attention,because the listed companies issue annual reports one after another,which will disclose the plan of cash dividends.Some of these companies will opt for high cash,others for low or even zero cash.In the financial decision-making of listed companies,it is very important to make reasonable dividend policy,and how the amount of cash will affect it is also the core content of its research.This paper will systematically comb the dividend policy of SAIC Group over the years,and discuss the motivation and economic consequences of its high distribution on the basis of classical theory.First of all,from the financial factors and non-financial factors two aspects of SAIC to adopt high dividend policy motivation.In terms of financial factors,the financial ratio analysis method is used,and the relevant indicators of selected peer companies are compared.Through comparative analysis,it is found that SAIC’s excellent profitability,stable operation ability and sustainable development ability are the important reasons that affect the group to adopt the high distribution policy.In the aspect of non-financial factors,the research is carried out from six angles: the policy of the SFC,the nature and structure of the company’s equity,the stage of development,the government subsidy obtained,the reduction of agency cost and the scale of operation.Secondly,from the financial effect,enterprise value and market reaction three aspects to explore the economic consequences of SAIC taking high dividends.It is found that the high cash dividend brings some negative effects,such as the increasingly tight cash flow and so on,which has not played an obvious role in the promotion of enterprise value.It also has some positive effects,such as discouraging inefficient investment,and positive reactions in capital markets,as measured by event-based calculations.Based on the above research,how can SAIC formulate more reasonable cash dividend policy when the automobile industry is faced with the challenge of macroeconomic impact and industry decline,this paper gives some suggestions,including determining the reasonable proportion of cash dividend distribution,changing the present situation of single cash dividend,introducing new distribution mode,and investing funds to enhance the competitiveness of independent brands.so that the group can seize the opportunity to achieve better development.Finally,for regulators and other companies facing the same economic environment,summed up four enlightenment,including the thinking of the regulatory environment,the establishment of financing system,increasing characteristics and differences,taking dividend policy carefully to maintain its stability and rationality.