Research On The Motivation And Effect Of Yunnan Baiyao’s High Dividend Policy Under The Background Of Mixed Reform

A dividend policy plays an extremely important role in corporate governance and is an important part of financial decision-making.As the leader in the pharmaceutical manufacturing industry,Yunnan Baiyao has developed a history of more than 100 years.Since its listing in 1993,the company has developed rapidly and has excellent performance.Since 2010,the company has begun a positive strategic change.The industry development strategy of "new white medicine,big health" has emerged.Yunnan Baiyao has gradually become one of the leading companies in my country’s big health industry.From 2013,my country’s government began to explore state-owned enterprises.After reforming the new way,Yunnan Baiyao became the first batch of mixed reform pilot enterprises.The dividend policy of Baiyao,Yunnan before and after the mixed reform,and the continued increase in dividend payment rates,such a high-school behavior has aroused the attention of all sectors of the society.This paper adopts a combination of theory and case research to analyze the current behavior of Yunnan Baiyao Co.,Ltd.First,review previous studies and elaborate on relevant concepts.Secondly,the history of the mixed reform of Yunnan baiyao and the distribution of dividends over the years are expounded.Third,this paper analyzes in detail the motives of Gaopai’s current behavior from both internal and external factors,including the ownership structure and enterprise life cycle,and external factors including the mixed reform of state-owned enterprises and the national dividend policy.Fourth,from the perspectives of comprehensive performance,R&D capability and market response,this paper uses the entropy method and the event research method to study the effect of the high distribution policy.Finally,on the basis of the above research,the shortcomings of Yunnan Baiyao’s dividend policy are pointed out and suggestions for improvement are put forward.It is found that:(1)the motivation for the implementation of the high dividend policy is diverse;(2)High distribution may not necessarily have a positive impact.Finally,in view of the lack of stability of Yunnan Baiyao’s dividend policy and insufficient investment in R&D and innovation,this paper puts forward the following suggestions:(1)optimize the equity structure;(2)stabilizing the level of dividend distribution;(3)Reasonably balance the proportion of cash dividends and R&D investment.