Research On The Motivation And Economic Consequences Of High Dividend Policy Of China South Publishing ? Media Group Co.,Ltd

As one of the important financial policies of listed companies,cash dividend policy is an important decision issue for listed companies to keep earnings within the enterprise or to distribute profits,which plays an important role in the operation and management of companies and has triggered the attention of many scholars at home and abroad.Compared with mature Western capital markets,the Chinese stock market has a relatively large proportion of listed companies that do not pay cash dividends,and the overall dividend level is low,which to a certain extent harms investors' interests.In this regard,the China Securities Regulatory Commission have promulgated a series of dividend policies since2001,aiming to further regulate the dividend payment behavior of listed companies and promote the formation of a good dividend atmosphere in China's capital market.The implementation of dividend policies has significantly improved the willingness and level of cash payouts of listed companies,and the phenomenon of high cash payouts in China's capital market has come to the fore.In addition to the promotion of dividend policy,what other factors prompt enterprises to implement a high payout policy? For the high payout behavior of listed companies,many scholars have adopted the empirical research method to study the motives and economic consequences of high payout behavior from the overall level or industry level of listed companies,and have come up with rich conclusions,but less research for specific enterprises.Based on this,China South Publishing ? Media Group Co.,Ltd,a "cash cow" company in the news and publishing industry with a low overall payout level,is selected to investigate the motivation and economic consequences of its high payout behavior to enrich the case study of high payout dividend policy.The three methods of case study,comparative analysis,and event study are used to investigate the motivation of the high dividend payout policy of China South Publishing ?Media Group Co.,Ltd by combining the "bird in hand" theory,dividend catering theory,agency cost theory,life cycle theory,and signaling theory,and the economic consequences of the high dividend payout policy from the perspectives of market response and corporate value.In this study,the market response to the high dividend policy is investigated by using the market model,and Tobin Q value is adopted to measure the impact of the implementation of the high dividend policy on the enterprise value.The following conclusions are drawn: first,strong financial support is the basis for high payout;second,the high payout dividend policy is implemented to meet the wishes of major shareholders and effective controllers;third,the maturity of the company prompts high payout;fourth,the company hopes to send a good signal to the market through the high payout dividend policy;fifth,the relevant regulatory policies promote the implementation of high payout dividend;sixth,the high payout dividend policy Sixth,the high cash dividend policy does not necessarily lead to a positive market reaction and does not have a positive effect on the enhancement of corporate value.Further analysis reveals that the following problems exist in the implementation of the high cash dividend policy of China South Publishing ? Media Group Co.,Ltd: the company's operating capacity is reduced and the cash payout increases operational risks;the competitiveness of the company is reduced and the growth rate of the company is slowed down;the stability of the dividend policy is poor,which affects the corporate value.In this regard,the following suggestions are made to address the above problems:enterprises should formulate reasonable dividend policies in light of the actual situation;ensure the stability of dividend policies;optimize the equity structure and improve the equity check and balance mechanism;improve the dividend supervision policy and increase supervision efforts.The analysis of the case company,China South Publishing ? Media Group Co.,Ltd,has enriched the case study of high payout dividend policy,and the derivedThe findings of the study provide some reference value for the formulation of dividend policies of other listed companies.