Research On High Dividend Policy Of BY-HEALTH From The Perspective Of Financial Strategy Matrix

Dividend policy is an important part of financial management activities,which not only affects the healthy development of the company in the future,but also relates to the vital interests of the majority of investors.Among them,the cash dividend policy has been the focus of the regulatory authorities,and the cash dividend level of listed companies in China is constantly improving.However,some listed companies,on the one hand,boast that they are high-quality companies that protect the rights and interests of small and medium-sized investors,and withdraw funds from listed companies by paying high cash dividends;On the other hand,it also continues to attract new funds through equity financing in the form of additional issuance,cash in at high positions and play various tricks similar to Ponzi scheme.In this game under the asymmetric information environment,small and medium-sized investors in a disadvantaged position often become the ultimate takers of the stock price decline after the false boom of such high dividend listed companies burst.Based on this,this thesis selects BY-HEALTH,which has been implementing high dividend and multiple equity financing for many consecutive years,as a case study enterprise.It uses literature research and case study methods,combined with the perspective of financial strategy matrix,to conduct a comprehensive analysis and evaluation of BY-HEALTH’s high dividend.First of all,this thesis combs the relevant literature,introduces the relevant concepts and theoretical basis.Secondly,an introduction is given to the basic overview and dividend distribution situation of BY-HEALTH over the years,with a horizontal comparison of his high dividend payout and an explanation of the reasons for applying the financial strategy matrix.Thirdly,build the financial strategy matrix interval of BY-HEALTH over the years,then judge whether the current high dividend policy is reasonable,specifically summarize the existing problems of high dividend,further analyze the reasons why BY-HEALTH insisted on choosing high dividend,and finally summarize the economic consequences of high dividend and put forward some suggestions for improvement.Through this study,it is found that high dividend policy of BY-HEALTH is a tool for major shareholders to realize the benefit transmission,and has not formulated a dividend policy in line with the company’s own development from the perspective of sustainable growth of enterprise value.Therefore,the high dividend policy has not brought positive market effect and financial effect to the company,hindered the sustainable development of the company,and ultimately will damage the investment interests of shareholders,especially small and medium-sized shareholders.This thesis puts forward the following suggestions for improvement: The case company should pay attention to the guiding role of financial strategy matrix in profit distribution decision-making;Maintain the stability of dividend distribution and properly use debt financing;Strengthen the supervision and balance of major shareholders;Improve the system construction to enhance the voice of minority shareholders.For regulatory authorities,institutional construction should be improved to safeguard the interests of small and medium-sized shareholders.For small and medium-sized shareholders themselves,they should get rid of their preference for cash dividends and change their irrational behavior in investment decisions.This thesis uses the financial strategy matrix,a scientific and convenient analysis tool,to apply the concept of sustainable growth of enterprise value to the analysis of high dividend of listed companies,and provide reference and inspiration for listed companies to formulate dividend distribution policies.