Empirical Analysis of Cash Dividend Capability of China's Listed Home Appliance Companies based on Free Cash Flow

DOI

10.2991/ssmi-18.2019.3How to use a DOI?

Keywords

Free cash flow; Surplus free cash flow; Listed home appliance company; Cash dividend; Ponzi dividend.

Abstract

Stock Price of GREE Electric Appliance, Inc. fell sharply without cash dividends distributed in GREE annual report on April 25, 2018. Based on fee cash flow and surplus free cash flow, this paper presents the evaluation criteria of dividend capability. Using the detailed data of sampled China’s listed home appliance companies, free cash flows, surplus free cash flows, and their cumulative values are computed. The capabilities of cash dividends are judged and comparatively analyzed. The results show that white goods companies have the best capabilities of cash dividends. Especially, the GREE’s cash dividend capability is investigated based on free cash flow. The results reveal that GREE has good cash dividend capability without diversified development. The forced dividends under CSRC leads to “Ponzi dividends”, and discourage from the promotion of core competitiveness and the development of listed companies to a certain extent.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ruocan Yuan
AU  - Xin’e Zhao
PY  - 2019/02
DA  - 2019/02
TI  - Empirical Analysis of Cash Dividend Capability of China's Listed Home Appliance Companies based on Free Cash Flow
BT  - Proceedings of the 2018 International Symposium on Social Science and Management Innovation (SSMI 2018)
PB  - Atlantis Press
SP  - 11
EP  - 16
SN  - 2352-5428
UR  - https://doi.org/10.2991/ssmi-18.2019.3
DO  - 10.2991/ssmi-18.2019.3
ID  - Yuan2019/02
ER  -