Research On The Reasons And Economic Consequences Of China Shenhua Energy Company’s High Cash Dividend Policy

Dividend policy has been paid much attention in the stock market.Dividend policy is not only an important decision-making of enterprise dividend distribution,but also has a great impact on investors and even the whole capital market.In recent years,the semi mandatory dividend policy formulated by China Securities Regulatory Commission(CSRC)for corporate cash dividends has greatly improved the level of cash dividends of listed companies compared with previous years.At the same time,there are many high cash dividend companies in the domestic capital market,and the benign and non-benign high cash dividend behaviors of enterprises are widely concerned by the investor market.According to the relevant research,the cash payout level of state-owned holding listed companies in the capital market is generally higher than the industry average,with a significant high cash payout characteristics,and their cash payout per share,dividend payment rate and cumulative cash payout scale are in the forefront of the market.Therefore,this paper chooses Shenhua,the leading enterprise in the coal industry with the majority of state-owned enterprises,as the case study object to explore the deep motivation and economic effect of high cash dividend behavior of enterprises,which has certain theoretical and practical significance.Firstly,this paper expounds the research background and significance of high cash dividend policy,and introduces the relevant theoretical basis in the follow-up analysis in detail;secondly,it analyzes the financial basis and high cash dividend motivation of China Shenhua;finally,it uses the event research method to study the market reaction of China Shenhua after high cash dividend policy,and divides the effect into positive effect and negative effect Based on the above analysis,the paper puts forward relevant suggestions from the aspects of dividend policy and market supervision.Through the research,it is concluded that the advantages and disadvantages of China Shenhua’s high cash dividend policy coexist.Although the high cash dividend improves the enterprise value and optimizes the resource allocation of the enterprise,it also increases the financing cost of the enterprise and has a negative impact on the investment strategy of the enterprise.Through the analysis of the motivation and economic effect of Shenhua high dividend policy,this paper has certain reference significance for the formulation of dividend policy of other listed enterprises,and provides exploration direction for the problems that may exist in the follow-up operation of enterprises.