Research On The Motivation And Economic Consequences Of Yanghe’s High Dividend Policy

Dividend policy is related to the development of enterprises and involves the interests of all parties,and is extremely important in the financial policy of listed companies.In China’s securities market,dividend distribution methods mainly include:cash payout,share distribution,share allotment and capital increase,among which the distribution of cash dividends has always been valued by the Securities Regulatory Commission and relevant investors.In recent years,the SFC has formulated a series of semi-mandatory dividend distribution policies for corporate payouts,resulting in a substantial increase in the level of cash dividends paid by listed companies compared to previous years.Many high cash payout companies have emerged in the domestic capital market,and whether such payout behaviour is benign has received wide attention from the investor market.Yanghe,one of the giants in China’s liquor industry,is also a more typical high cash-paying company,making high cash dividend payments for nine consecutive years from 2013 to 2021.In this thesis,Yanghe shares are selected as the subject of study to analyse the motivitions and economic consequences of its high cash payout.The thesis relies on classical theories to explore the internal and external motivitions of Yanghe’s high payout behaviour,and analyses the economic consequences in terms of short-term market reactions,enterprise value fluctuations,R&D and innovation efficiency.It concludes that the external motivitions of Yanghe’s high payout include semi-compulsory policy guidance,the characterisation of high payout in the liquor industry and the company’s need to send positive signals to the outside;the internal motivitions include the financial support,the fulfillment of major shareholders’ interest,self-interest in management’s shareholding and poor investment opportunities.From the perspective of the effect of the implementation of Yanghe’s high cash dividend policy,the thesis concludes that the high cash dividend policy has made a positive impact on Yanghe’s share price in the short term,and that the high cash dividend has served as a positive signal to help grow the value of the company,but the impact is relatively weak.Although the high cash payout took up a large amount of cash flow,it did not inhibit the company’s investment in R&D and innovation.Based on the findings,the following recommendations are made: Yanghe should improve its dividend system,seize the opportunity to leave the turbulent period and invest prudently;listed companies should also formulate reasonable dividend policies and optimise their shareholding structures;investors should take the initiative to narrow the information gap and invest wisely;the regulator should also further improve the information disclosure system and refine the dividend rules.The thesis summarizes the motivation and economic consequences of Yanghe’s high dividend payout policy so as to provide reference for Yanghe,listed companies,investors and the regulatory authorities.