Research On The Causes And Economic Consequences Of Tan Mujiang's High Cash Dividend

Dividend policy is one of the important financial policies in corporate governance.It is a tool for management to deliver corporate information,and also a channel for investors to get profits.The dividend policy of listed companies has always been studied and concerned by scholars and investors at home and abroad.In recent years,with the implementation of various policies to encourage cash dividends,more and more listed companies have joined the team of dividends,the proportion of cash dividends distributed by listed companies has also increased significantly,and cash dividends have gradually become the mainstream of dividend distribution.On the one hand,positive and high cash dividends will indeed increase investors’ confidence,enhance investors’ sense of identity and belonging to the company and improve the reputation of the enterprise,but on the other hand,high cash distributions may lead to problems such as reduced retained cash and difficult capital turnover.Some listed companies will even use the high cash dividend policy to manipulate the company’s funds,which will infringe on the interests of small and medium-sized investors.Therefore,the motivation and economic consequences of an enterprise’s high cash dividend policy deserve in-depth analysis and investigation.This paper uses the case study method to study the motivation and economic consequences of the high cash dividend policy implemented by Tan carpenter Co.,Ltd.Firstly,the paper reviews the relevant research on dividend policy and the influencing factors of cash dividend distribution at home and abroad,defines the dividend policy and,and introduces the relevant theoretical basis of dividend policy and corporate social responsibility,so as to provide a theoretical basis for the following paper.Secondly,according to the implementation of Tan carpenter’s dividend policy over the years,this paper summarizes the characteristics of his dividend distribution,analyzes the motivation of Tan carpenter’s implementation of high cash dividend policy from both internal and external aspects,and finds that Tan carpenter’s strong profitability and sufficient cash flow provide capital and feasibility conditions for Tan carpenter’s high cash dividend policy,The more concentrated ownership structure may not be the whole motivation for Carpenter Tan to pay high cash dividends.From the perspective of corporate social responsibility,this paper finds that Carpenter Tan’s strong willingness to fulfill corporate social responsibility is one of the important motivation.Finally,this paper analyzes the economic consequences of Carpenter Tan’s implementation of the high cash dividend policy from the perspectives of financial effect,short-term market response and long-term enterprise value,and comes to the conclusion that the high cash dividend will bring a certain degree of positive short-term market response and long-term market value to the enterprise.This paper selects Carpenter Tan’s case for analysis,which enriches the existing research results;Secondly,based on the perspective of corporate social responsibility,through the study of Carpenter Tan’s corporate responsibility performance and corporate social responsibility performance,this paper verifies the previous scholars’ conclusion that corporate social responsibility will have a positive impact on cash dividends;Finally,in the case analysis,suggestions are put forward for the problems existing in Carpenter Tan’s dividend policy,which is conducive to the long-term operation and healthy development of the company.