Analysis On The Influencing Factors And Effects Of Peacebird’s High Cash Dividend Policy

Profit distribution of listed companies is an important content of corporate financial management,which not only affects the vital interests of investors,but also affects the image and value of enterprises.It has been a hot issue studied by scholars.With the continuous development of China’s securities market,the Securities Regulatory Commission has issued a series of semi mandatory dividend policies.These semi mandatory dividend policies have achieved significant results.The proportion of cash dividends paid by domestic listed companies has steadily increased,and the intensity of dividend distribution has continuously increased,resulting in the emergence of a number of companies with high cash dividends.Some scholars have found that although the high dividend payout behavior of listed companies meets the relevant policy requirements of semi mandatory dividends,irrational high dividend payout behavior can also harm the rights and interests of stakeholders such as creditors and small and medium-sized shareholders.If the company’s cash flow and profitability are not sufficient to support the high dividend policy,it will trigger a financial crisis;If a company misses investment opportunities in order to implement a high cash dividend policy,it will affect its long-term development.Therefore,in addition to the promotion of the semi mandatory dividend policy,it is of great practical significance to analyze other factors that affect the implementation of the high dividend policy by listed companies in China and its economic effects.The existing research is mostly based on the entire A-share market or a certain industry as the research object to analyze the causes and impact of high dividend policy.This article uses the case analysis method to select Peacebird,which has received the most attention in the clothing and textile industry in recent years,as the research object of the high dividend policy.Combining classic dividend theory,this paper uses financial indicators,comparative analysis,event research,Tobin Q value method,and other methods to analyze the influencing factors and effects of high dividend policy.The research finds that Peacebird’s dividend policy has the characteristics of single dividend payment form,stable dividend policy,high dividend payment rate,and benign high dividend payout.Then,through a specific analysis of internal and external factors such as Peacebird’s economic strength,equity structure,and macro policies,it is found that the influencing factors of Peacebird’s high cash dividend policy are: the support of strong economic strength,meeting the interest needs of major shareholders and management,transmitting a signal of good operation to the market,and the promotion of macro policies.Finally,based on financial effects,market effects,and agency costs,the economic effects of Peacebird’s high cash dividend policy are analyzed.The results show that the formulation of its high cash dividend policy is reasonable to some extent,but there is the possibility of tunneling and interest encroachment.Firstly,the high cash dividend policy leads to an increase in financing costs and a limited role in regulating asset management capabilities;Secondly,high cash payout behavior may not cause a positive market reaction in the short term,but it has a certain positive effect on the promotion of enterprise value;Third,the high dividend policy reduces the company’s first type of agency costs and increases the second type of agency costs.Through the study of the Peacebird case,some suggestions for improving the formulation of high dividend policies of listed companies can be drawn,including that listed companies should improve their financial capabilities,optimize their equity structure,improve their internal governance,and diversify their dividend payment forms.At the same time,regulators should improve regulatory rules and protect the rights and interests of minority shareholders,and investors should establish correct investment concepts.Finally,we call on more scholars to join the dividend policy research,provide more research cases on the dividend policy of listed companies,and provide suggestions for the sustainable and healthy development of China’s capital market.