A Study On The Causes And Economic Consequences Of Shenhua's Overallocation

In recent years,with the promulgations of numerous policies of the CSRC,listed companies are more inclined to pay cash dividends,which alleviates the phenomenon of insufficient cash dividend to some extent.Subsequently,some companies adopt the policy of high cash dividend,and this action also attracts the attention of investors and scholars.In 2020 the country put forward the objective,carbon neutral coal leading China shenhua will raise its dividend payment rate to91.91%,so this article in China shenhua energy,for example the high cash dividend policy of listed companies is studied,using the literature research,case method,event study method,through the study found that China shenhua the high cash dividend policy advantages and disadvantages coexist,to some extent,it has affected the sustainable development of the company.It is expected to provide references for the formulation of cash dividend policy of listed companies and the subsequent research of scholars.First,this paper introduces the concept and related theories of high dividend policy,which lays a foundation for the specific analysis below.The theoretical part includes "bird in the hand" theory,life cycle theory,tunnel digging theory and signal transmission theory.Second,taking China Shenhua As an example,it first introduces the current situation of the whole coal industry and the current dividend policy of China Shenhua under the background of carbon neutrality,and compares it with the dividend policy of coal enterprises.Thirdly,based on the financial analysis of the motivation of Shenhua,it is found that as a large state-owned enterprise,it has strong capital,strong debt paying ability,increased deposit absorption and reduced loan issuance,so it has sufficient cash flow.However,it has problems such as declining profitability,weakened operating capacity and impaired growth capacity.From the perspective of non-financial analysis,it is found that the high cash payout is to cater to national policies and deliver the company's excellent status after transformation and upgrading under the background of carbon neutrality.However,there are also problems such as lack of investment opportunities in the mature stage and damage to the interests of minority shareholders by controlling shareholders' capital reserve and transfer through high cash payout.Fourthly,it analyzes the financial impact of Shenhua Gaopai,it is found that the short-term market reaction is fierce,but there is a long-term value reduction of enterprises and the sustainable growth is blocked.Finally,it puts forward some suggestions to optimize the dividend policy of Shenhua,hoping that Shenhua can maintain a stable dividend payout rate,so as to promote the overall improvement of enterprise value.Introduce third-party institutional investment,prevent "one dominant share",broaden the voting channels of minority shareholders,protect the rights and interests of minority shareholders;Attaching importance to future investment opportunities,increasing cash flow expenditure of investment activities,and achieving sustainable development can enhance the company's staying power;Regulatory departments should also constantly introduce policies for cash dividends,standardize and supervise the management mechanism of cash dividends.To enrich the research of high dividend policy,and provide reference for the same industry companies to formulate dividend policy.