Analysis On The Influence Factors And Economic Consequences Of Absen’s Abnormally High Cash Dividend Policy

Dividend policy is an important component of financial management of listed companies and a core link in profit distribution.It not only reflects the long-term return on investment of shareholders,but also is closely related to the conflict of interest between major shareholders and small and medium-sized shareholders.The dividend policy of listed companies in China is divided by the year 2000.Prior to 2000,listed companies in China rarely conducted cash dividends,and the dividend policy mainly focused on stock dividends and conversion into shares.After 2000,in order to increase the willingness of listed companies to distribute dividends,the China Securities Regulatory Commission(CSRC)introduced a series of policies to encourage cash dividends,significantly increasing the number and scale of dividends for listed companies.At the same time,the phenomenon of "abnormally high dividend payouts" began to emerge and gradually increased,attracting the attention of a large number of investors and scholars.In order to study the laws behind abnormally high dividends,this article takes Absen as the research object and analyzes the influencing factors and economic consequences of his abnormally high dividends in mid-2022.Firstly,this article summarizes the research findings related to dividend policies and abnormally high dividends to obtain the research ideas and framework of this article.Then,based on this,a study was conducted on Absen’s abnormally high dividend payout in mid 2022.The study found that Absen had poor financial condition,cash flow shortage,insufficient funds,and a strong demand for funds in mid 2022.Choosing to make an abnormally high dividend payout at this time was mainly to meet the demand of the actual controller to quickly recover investment costs after the fixed increase.At the same time,the existence of the following situations provides opportunities for the actual controller to quickly recover capital through high dividends: close relationships and consistent interests among major shareholders;There are few institutional investors and dispersed equity structures,making it difficult to effectively constrain major shareholders;Small and medium-sized shareholders have low enthusiasm for participating in corporate governance,while major shareholders use shareholder meetings to seek personal gain for themselves;High overlap between management and major shareholders,representing the interests of major shareholders;Major shareholders can use national policies to cover up for abnormally high dividends.The economic consequences it brings include: the income and risks obtained by small and medium-sized shareholders and major shareholders in abnormally high dividends are inconsistent,and the interests of small and medium-sized shareholders are harmed;The increase in financial and operational risks of the company will ultimately have a negative impact on the future development of the enterprise;Institutional investors are not optimistic about Absen’s performance after abnormally high dividends,resulting in a decrease in investment volume and proportion;Reduced enterprise value.Finally,based on case analysis,this article proposes targeted suggestions from three levels: internal governance,external institutions,and regulatory systems,hoping to restrain major shareholders from using abnormally high dividends for their own profits and safeguard the legitimate rights and interests of small and medium-sized shareholders.This article enriches the cases of abnormally high dividends in China and has strong practical and theoretical significance.