Author(s)

Yu Guo

Corresponding Author

Yu Guo

ABSTRACT

Cash dividend is an important form for investors to realize the return on investment, which could also cultivate the long-term investment concept of the capital market and enhance the vitality and attraction of the capital market. In order to explore the factors for enterprises to choose high cash dividend policy and its impact on the value of the company, this paper takes Gree Electric, one of the best listed companies in China's A-share market, as the research object. From the three financial factors of profitability, solvency and cash flow, three non-financial factors of supervision of CSRC, growth cycle theory and investment opportunities, the paper explores the influencing factors for Gree to choose high dividend policy. In addition, it explores the reasons for Gree's no dividend event in 2017, which could be contributed to its diversified development strategy. Moreover, it analyses three ways for the high cash dividend policy to enhance the value of the company, which contains enhancing the brand premium, attracting long-term investors and avoiding blind diversification and promoting rational investment.

KEYWORDS

High cash dividend policy, Gree Electric appliances, Influencing factors, Economic impacts