Research On Dividend Policy Of White Household Appliance Enterprises And Its Influencing Factors

Dividend policy is a way for a company to distribute its income or retain its investment in order to balance the interests of all parties.China’s dividend policy in the development of continuous improvement,but there are still many problems in the implementation process.This article takes the white household appliance enterprise as the foothold,through the analysis discovered that the different white household appliance enterprise’s dividend payment level difference is huge,the dividend policy is discontinuous,lacks the long-term stable dividend policy,as a result,investors can not make a reasonable judgment based on the dividend information,and the stock price fluctuates accordingly,which is not conducive to the long-term healthy development of enterprises.In this paper,we choose two old-brand enterprises in white household appliances industry,gree electric appliance and Changhong Meiling,as research cases to explain the difference of dividend policy between "high dividend" and "iron rooster" from financial and non-financial aspects.In the financial aspect,by comparing the profitability,debt repayment ability,growth ability and cash flow status of the two enterprises over the years since they went public,it is found that the overall financial situation of gree electric appliance is obviously better than that of Changhong Meiling,therefore,it provides the basic condition for the high dividend policy of gree electric appliances.In the non-financial aspect,the change of ownership structure,the establishment of company strategy,the difference of market orientation and pricing ability of the two enterprises all influence the dividend policy.These factors led to the two companies formed a very different style of dividend policy,but also brought different market reactions.By using the event study method,it is found that when dividend information is issued,it will attract investors quickly,cause the fluctuation of stock price,and reflect in the market,thus affect the enterprise value.Finally,by summarizing the dividend policy of gree electric appliance and Changhong Meiling,the paper puts forward some suggestions to perfect the dividend policy of white electric appliance enterprises from the perspectives of home appliance enterprises,government departments and investors.The implementation and perfection of dividend policy is of great significance to the long-term development of enterprises,and it can help investors judge scientifically and rationally and balance the interests of all parties.