The Reasons,consequences And Treatments Of "iron Cock" Cash Dividend Sharing Behavior

Cash dividend is an important cornerstone of value investment.Under the regulatory background of China's Securities Regulatory Commission vigorously advocating cash dividend,the problem of stingy dividend should have been alleviated,but the fact is that the "Iron Cock" phenomenon can be seen everywhere in stock market.In order to explain the phenomenon of stingy dividend distribution in domestic stock market,this paper will take Top Choice Medical Investment Co.,Inc.as a case to analyze analysis of the reasons for the "Iron Cock" cash dividend of TC Medical for 10 consecutive years non-dividend and Occasionally differential dividend.According to the research findings,first of all,The profit level and profit margin of TC Medical are at a higher level in the industry.The remaining debt financing space is large,the debt pressure is small,and the company has the strength of cash dividend distribution.Secondly,although the medical service industry is in the expansion period,its investment expansion efficiency and operation efficiency are not as good as that of Aier Eye Hospital Group Co.,Ltd.which pays dividends every year in the same industry.Thirdly,TC Medical has repeatedly taken the negative distribution profit of the parent company as the reason for no dividend.By inqu iring into the fact that the undistributed profits in the consolidated statements have already been profitable and the majority of its holding subsidiaries found that the reason is deliberately drilling regulatory loopholes and suspicion of artificial operation.Further study found that the core factor of TC Medical "Iron Cock" cash dividend is human motivation.Undoubtedly,the ultimate shareholder's "tunneling" behavior will be revealed through three items: Concealing the planned behavior of backdoor listing of affiliated relationship,setting up an incentive mode that focuses on the interests of ultimate shareholders and senior management and isolates the interests of small and medium-sized shareholders,intends to purchase assets under the actual controller at a high premium,but the fictitious income with asset restructuring is aborted.Among them,the most characteristic of "tunnel excavation" is the operating mechanism of employee fund set by TC medical ultimate shareholders and senior managers,which is based on their own interests and evades dividends.Through this mode,TC medical can legally avoid dividend-sharing obligations,but does not affect the ultimate shareholders and relevant senior managers to profit from it.In addition,the surplus debt financing space of TC medical is large enough,the incentive to actively meet cash dividend conditions in order to obtain equity refinancing qualifications isinsufficient."Iron cock" cash dividends will not only hurt the interests of investors,but also damage the image of the enterprise itself,if the wind of "iron cock" prevails,the relationship between the company's operating performance and cash dividend can not be reflected.In the long run,stock prices will lose value support,and speculation in the stock market is rampant.Therefore,it is urgent to control the "iron cock" cash dividend-sharing behavior.At present,there is still a regulatory gap in the "semi-mandatory dividend-sharing policy",based on the case study of TC Medical,this paper puts forward six governance suggestions,with a view to filling in the gaps in the dividend-sharing supervision system,strengthening the governance of "iron cock" cash dividend,and promoting the healthy development of capital market.