An Analysis Of The Influencing Factors And Effects Of Gree’s Sustained High Cash Dividend Policy

Dividend payment,as a policy for enterprises to distribute or retain their earnings for reinvestment,has an important impact on the interests of enterprises and investors.With the development of the securities market,regulators and market investors have found that many dividend policies of listed companies only stay on simple profit distribution,and many unreasonable dividend policies lead to shareholders’ rights and interests not being protected,and the society’s recognition of enterprise value is not high.Therefore,the long-term stability of listed enterprise value lacks foundation.In order to effectively regulate the securities market,since 2004,China Securities Regulatory Commission has issued several policies and regulations to guide and constrain the regulation,such as Several Provisions on Strengthening the Protection of the Rights and Interests of Public Shareholders,Measures for the Administration of Securities Issuance of Listed Companies,and Decision on Amending Several Provisions on Cash Dividends of Listed Companies,which has greatly promoted the standardization and development of China’s securities market.According to the data of CAPCO,from 2008 to 2021,the proportion of listed companies that have paid dividends in a row has risen significantly,among which the proportion of listed companies that have paid dividends for five consecutive years has risen from 24% to 50%,and the proportion of listed companies that have paid dividends for 10 consecutive years has risen from 4% to 32%.Not only the number of listed enterprises has increased year by year,but also the dividend payment rate of listed enterprises has been rising.Gree Electric,as the representative of the continuous high dividend policy in the white appliance industry,has distributed dividends 28 times for23 consecutive years since its listing in 1996,Average dividend payout rate 50.92%.The dividend payment rate ranks first in the white appliance industry all the year round.Especially in the context of the "trade war" between China and the United States in2018 and the COVID-19 since 2020,Gree Electric not only did not reduce the dividend ratio,but even increased the dividend ratio from an average of 50% to more than 70%.Therefore,this article will conduct in-depth research on Gree Electric Appliances as a case study.This article mainly studies the factors that affect dividend policy based on dividend signal theory,dividend agency cost theory,and dividend catering theory.Based on domestic and foreign literature,it preliminarily summarizes three major types of influencing factors: company factor,shareholder factor,and legal factor.Combining Greegao’s dividend policy with practical case studies,it uses event analysis method to study the market effects of company stock price fluctuations,Tobin’s Q-value analysis of the company’s own value changes reveals through theoretical and case studies that the influencing factors of its continuous cash dividend policy are multifaceted,and the dividend policy has a positive effect on its stock price and corporate value.Therefore,the designation of dividend policy should be comprehensively considered from both internal and external aspects to maintain a certain degree of growth and stability.Based on the relevant conclusions of case studies,provide decision-making basis for listed companies to choose dividend policies,provide reference for investors to study the company’s own operations through dividend policies,and provide samples for regulatory agencies to supervise dividend policies of listed companies.