Research On The Motivations And Implementation Effects Of S Company’s High Cash Dividend Policy

The development of an enterprise is closely related to the implementation of dividend policy.First,the choice and implementation of dividend policy can convey the information of the company’s current operating conditions and development expectations to the outside world and attract the special attention of creditors,external investors and other groups.Second,the proper implementation of dividend policy is also of great benefit to corporate financing,and can enhance corporate reputation and stock value.In a series of encouraging the cash dividends policy and implementation of the background,the cash dividend policy of listed company of China is rapidly developing,in this process the high sent now phenomenon gradually increased,the scholars and the broad masses of investors are paying more attention to the enterprise to implement high sent now is reasonable,the implementation of high sent now need what kind of the premise,what are the driving factors,the effect how,improper implementation will have what kind of risk,these problems are worth further exploration.Based on this,this thesis chooses S Company,which has high cash payout phenomenon in the passenger car industry,to conduct a case study.This thesis adopts literature research method and other methods,following the general to special research ideas,to carry out the analysis of the case enterprise.First of all,this thesis starts from sorting out the literature achievements of domestic and foreign scholars on the theory of dividend policy,the motivation and implementation effect of cash dividend policy and the phenomenon of high dividend payout,so as to provide literature support for this research.Secondly,the thesis introduces and analyzes the concept of dividend policy,the concept and type of high dividend,the influencing factors of high dividend policy and the theoretical basis of dividend policy.Again,this thesis introduces the our country listed company and the company S in passenger car industry the dividend of listed company as a whole group,and select close to company S scale strength and profitability of changan automobile,byd,and the Great Wall motor three companies in the same industry for every 10 shares dividend distribution situation and dividend payment rate were analyzed,and summarizes the characteristics of the company S high cash dividend policy.On this basis,this article from the external environment,corporate governance,financial status and government subsidies four aspects analyzes the company S implementation of the dividend policy,and from financial effect,the short-term market reaction,long-term market and enterprise value four aspects,the use of financial indicators,price,event study method,the stock market capitalization and tobin Q indicators and methods to analyze the implementation of the company S high cash dividend policy effect.Finally,this thesis summarizes the internal and external causes and implementation effects of S Company’s high cash distribution,and draws the main conclusions: high cash distribution is an important channel for controlling shareholders to realize their interest demands;High cash payout may cause poor financial effect;High payouts have a two-sided impact on short-term market reactions;Continuous and stable high payout is conducive to the improvement of enterprise value.And get enlightenment: optimize the shareholding structure,perfect corporate governance;Combined with their own situation,improve the comprehensive financial ability;Maintain a steady and high level of payouts;Constantly improve and introduce cash dividend and supporting policies.