On High Dividends Payouts Of Focus Technology Co.,Ltd.

The dividend policy has always been an important research object in academia all over the world.The dividend policy not only affects the interests of the company’s major shareholders and the interests of external minority shareholders,but also relates to the company’s future business performance.It is also an important concern for the financial management of listed companies.In Chinese capital market,there is a situation of not paying cash or sending little cash of listed companies in order to keep their income inside the company.To this end,the CSRC and other regulatory agencies have issued a series of regulatory requirements,which are the semi-mandatory requirements for listed companies to carry out cash dividends.And the number of companies which have been dispatched has increased substantially,and the amount of cash sent has gradually increased,so there has been a general phenomenon of high distribution.Some scholars have found that some companies which have highdistribution don’t have enough profitability and cash flow levels to support their normal operation.High dividends payouts of these companies will infringe the interests of small and medium investors and seriously damage the value of the company.This paper selects Focus Technology Co.,Ltd.as the case study object.Focus Technology Co.,Ltd.is one of the earliest foreign trade B2 B e-commerce platforms in the domestic Internet industry.Although it is a small-scale Internet company,it is one of the representative companies with high dividends payouts.Since its listing in 2009,Focus Technology Co.,Ltd.has been implementing a high-level cash dividend policy.It has also been conducting unusually high dividends for three consecutive years since 2015.Dividends per share are greater than earnings per share or net operating per share.This paper adopts the case study method,taking the abnormally high dividends payouts of Focus Technology Co.,Ltd.as an example,and studies the general situation and characteristics of Focus Technology Co.,Ltd.high dividend policy.Based on the dividend theory,it analyzes the motivation of t high dividends payouts.On the basis of the analysis of the economic consequences caused by its high dividends payouts,the evaluation is made and the optimization suggestions are put forward.This article is divided into six parts.The first part analyzes the research background of the high-dividend dividend policy,and sorts out the existing literature to study its concept definition,motivation,influencing factors and economic consequences.The second part introduces the institutional background and theoretical background of the high-profile distribution of Focus Technology Co.,Ltd.The third part is the analysis of the characteristics of the dividend-paying policy of Focus Technology Co.,Ltd.and the motivation analysis.Combined with the characteristics of its dividend policy and the analysis of the dividend theory,this part analyzes three reasons for Focus Technology Co.,Ltd.The first reason is principal-agent problems and the second is to Obtain legal investment income.The third reason is the transmission of positive signal.The fourth part analyzes the economic consequences of Focus Technology Co.,Ltd.and the current dividend policy from three aspects of financial performance,market reaction and cash flow.The fifth part combines the analysis of the third part and fourth part to proposes management suggestions to the case company and make policy recommendations on regulating the dividend distribution behavior of listed companies.The sixth part is summarized.This paper will help to enrich the case studies of large-scale Internet listed companies with high dividends payouts,which provides a certain reference value for the future research of high dividends.This paper studies the high-profile issues of Focus Technology Co.,Ltd.,which helps to increase the concern about the phenomenon of high distribution of listed companies and helps investors to make investment rationally.In addition,it has a certain guiding role for other companies that carry out high-distribution and rationally formulate cash dividend distribution policies.