The Case Study On Dividends Policies Of Gree Electric Applicances Inc.

Equity division reform capital market in our country started in 2005,capital market development in 2008 of the securities market regulatory requirements are put forward on the refinancing of listed companies,strengthen the supervision of the listed company cash dividends,along with our country capital market matures,the dividend policy is given more and more attention by market investors and listed companies.The current domestic study of dividend policy has focused on the application of the theory of dividend distribution policy of western capital market of our country’s listed companies are empirically large sample data,rarely focusing on a specific case.Gree electric appliances,as the first to participate in the reform of state ownership enterprise company,listed have been completed since 20 times dividend distribution,and with its high cash dividend had been favored by investors in the market,but in recent years,influenced by the macro policies and industry competition pressure,Gree electric appliances is faced with the challenge of diversified transformation,at the same time also implies some problems in the change of dividend policy.This paper aims to Gree electric appliances from the distribution of dividend policy motivation to allocation,to the whole process of information disclosure research,conclusion can be draw lessons from the experience and deficiencies and puts forward Suggestions for improvement,also provide Suggestions for other listed companies.This paper conducts a case study on the whole process of Gree electric appliances’ dividend policy.Taking 2017,when dividend distribution was interrupted,as the time segmentation point,it analyzes the financial and non-financial influencing factors in its dividend policy and the market reaction after dividend distribution.The research results show that Gree electric appliances pays attention to the impact of dividend policy on enterprise value in the year of continuous dividend distribution.The dividend policy with high dividend payout is basically consistent with the change of cash flow per share,and pays attention to the impact of dividend policy on enterprise’s long-term solvency,which has some advantages that can be used for reference.At the same time,in the year of continuous dividend distribution,i.e.,from 2008 to 2016,Gree electric appliances has an aggressive dividend distribution phenomenon in which the dividend increase exceeds the performance growth in some years.In addition,the mode of dividend payment is mainly cash dividend.Considering the property right nature of Gree electric appliances,it may be suspected that major shareholders pursue high cash dividend and make passive investment when the growth of partial cash dividend exceeds the growth of performance.In 2017,the dividend distribution interruption of Gree electric appliances caused negative effects in the market.Through analysis,there is no long-term flexible dividend policy arrangement of Gree electric appliances behind the dividend distribution interruption,and there may be problems such as insufficient information disclosure in a timely manner.In view of the above problems,this paper proposes the following Suggestions: appropriately reduce the amount and growth rate of dividend distribution,so as to make it consistent with the enterprise’s overall strategy and performance growth;Decentralized ownership structure makes it play the role of balancing the major shareholders and the management,giving priority to the long-term development of the enterprise and protecting the interests of small and medium-sized shareholders,avoiding the polarization of dividend changes;Looking for diversified investment projects that can really gain business growth points and reduce the idle cost of own funds;Make long-term investment plans while ensuring the flexibility and stability of dividend distribution policies.This article,focusing on the dividend policy of Gree electric appliances,including dividend distribution scheme,motivation and information disclosure at all levels,research focus on the dividend interruption point in 2017 and the status before and after the interruption point,at the same time,combined corporate strategy layout and life cycle assessment with dividend policy can draw lessons from the lack of experience and has yet to be improved,has certain innovative;Because the research data are all from the public information of listed companies and the limitations of my research ability,there may be insufficient deficiencies in analyzing the causes of the dividend problem.