Case Analysis Of "High Cash Payment" In Shuanghui Development

There are many policies for enterprises,including marketing policy,human resources management policy and financial policy,each policy should correspond to a department.Among these policies,scholars pay more attention to financial management policies,which are formulated to regulate financial relations,referring to the system of financial management involved in the process of production and operation of enterprises.The content of financial policy is very extensive,including credit management policy,tax policy,risk management policy,dividend policy and so on.Each policy will affect the long-term development of enterprises,and dividend policy plays an obvious role,which has a very far-reaching and wide impact on enterprises.Generally speaking,the policy can reflect the development status of enterprises,affect the development expectations of enterprises,and even affect the interests of shareholders and creditors,and convey the image of enterprises.Therefore,dividend policy has always been a hot topic.Scholars like to study dividend policy.At present,the research on dividend policy in our country is still in its infancy,developing slowly,the depth of the research is far from enough,the content of the research is relatively narrow,and many theories related to dividend policy are not complete.Therefore,this paper aims to read the literature of predecessors and study carefully,hoping to put forward more perfect reasons that may affect the cash dividend policy.As far as China is concerned,there are many problems and shortcomings in the immature capital market,which may lead to unreasonable dividend policy.Some enterprises choose dividend policy blindly and arbitrarily,which is not based on their own development.The dividend policy formulated does not meet the development requirements of enterprises,can not create economic value for enterprises,and enterprises can not achieve economic benefits.Damage to the interests of small and medium-sized shareholders,making small and medium-sized shareholders lose confidence in the company.Therefore,listed companies can not arbitrarily choose the dividend policy of non-distribution or less distribution.They should strive to stabilize and rationalize the cash dividend policy of listed companies and safeguard the interests of stakeholders.This is also an important topic in the academic circles of our country.In recent years,under the influence of national policy and market economy,the government has formulated and promulgated the dividend policy of equity refinancing,which has led to the pressure of Listed Companies in China to distribute cash dividends one after another,resulting in an abnormal increase in cash dividend ratio.There have been some phenomena of High-quota cash dividends in the market,which has aroused considerable attention in the academic circles.This paper combs the previous theoretical research,and analyses the continuous development of high dividend policy of Shuanghui.First,read the literature and sort out all the research on cash dividend policy,including the research on cash dividend,the research on high dividend and the research on cash dividend policy.Secondly,summarize the research results related to the arguments of this paper,introduce many ways of dividend payment and their definitions,introduce the concept of high dividend,the manifestation of high dividend,and so on.This paper introduces the case of "high dividend payout" in the development of Shuanghui,including company profile and dividend policy over the years,and draws a conclusion about the characteristics of the dividend policy of the case company.Finally,it concludes that the financial situation,ownership structure and industry development of the company will affect the cash dividend policy.Furthermore,it summarizes the high dividend payout policy in the development of Shuanghui,and evaluates the development of Shuanghui and the high dividend payout policy.Finally,the paper puts forward some suggestions on the development of high cash dividend policy for double remittance,and also gives some corresponding opinions and suggestions to minority shareholders,creditors and listed companies.Through the analysis of the phenomenon of high dividend payout rate in the development of Shuanghui,we can basically ascertain that there are certain reasons leading to the implementation of high dividend payout policy:(1)Solid profitability is the premise of the implementation of high cash dividend policy in enterprises.Only when the company has enough surplus funds,can the company implement high dividend.(2)Adequate free liquidity is a necessary condition for cash dividend policy.Only when enterprises retain more funds and have more cash on hand,and have no other investment use,can they pay cash dividends to investors and increase their return on investment.(3)The ownership structure of the company will affect the dividend policy of the enterprise,and this influence is very strong.The more concentrated the shares of listed companies,the higher the degree to which the major shareholders decide the dividend policy.(4)When considering whether the cash dividend policy should be adopted,enterprises should consider whether the policy can convey information to the outside world so as to attract investors’ participation.Therefore,for this purpose,companies are likely to choose a high dividend policy.(5)Influenced by the regulations promulgated by China’s macro-economy and the Securities Regulatory Commission,the government promulgates the equity refinancing policy,which promotes the high dividend payout policy.(6)In different industries,the dividend policy of enterprises will have different choices.Some enterprises adopt the policy of less or no dividend,while many companies in the food industry tend to adopt the policy of cash dividend.After researching and analyzing the dividend policy of double-exchange development,this paper draws the conclusion that the high dividend policy has two-sidedness,and the proper implementation will bring positive effects to the company,but if it is not properly implemented,it will bring negative effects to the company.Therefore,listed companies must take full account of all aspects of the reasons inside and outside the company,bear in mind that they can not do the same thing in the east,regardless of their own actual situation,enterprises should aim at maximizing the value of enterprises,and balance investors.