Cash dividend distribution is the main form for listed companies to give back to investors, and it is also an important embodiment of company value. In recent years, more and more investors pay attention to the cash dividend distribution of companies, and regulators also encourage listed companies to pay cash dividends. Companies with more cash dividends such as China Shenhua and Fuyao Glass were named and praised by the CSRC. In the process of the continuous development of the financial market, there may be some problems that cannot be well solved by the market mechanism, which require the intervention of the government or regulatory agencies, especially in socialist countries. In recent years, China has continuously improved the market mechanism to protect the interests of small and medium-sized investors, promoted listed companies to effectively return investors, and formulated a series of semi-mandatory measures to guide listed companies to properly pay cash dividends. However, under the strong supervision of dividends, some "iron cocks" still insist on not paying dividends. The reason has attracted the attention of scholars at home and abroad. This paper selects Lianmei Holdings, a listed company named by Shanghai Stock Exchange, to deeply understand the specific reasons why the "iron rooster" does not pay dividends and whether it is reasonable for the company not to pay dividends. Based on the public data of Lianmei Holdings 20 12-20 17, this paper looks at the dividend behavior from the perspective of traditional industries.
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Cash dividend is the dividend and bonus paid in cash, which is the most common and basic form of dividend. Instead of stock dividends. The cash paid by an enterprise to shareholders generally comes from the current profit or accumulated profit of the enterprise. All dividends must be announced by the board of directors, and those who receive dividends must pay taxes. The amount of cash dividend mainly depends on the company's dividend policy and operating performance.
Listed companies pay cash dividends mainly for three reasons:
1, investor preference.
2. Reduce agency costs.
3. Pass on the company's future information.
4. Affect the future stock price.
When a company adopts the form of cash dividend, it must meet two basic conditions:
First, the company should have enough retained earnings (undistributed profits) that are not specified for use.
Second, the company should have enough cash.