Study On GEM Companies "High Stock Dividends And Stock Splits"

Nowadays,in the capital market of China,“High stock dividends and stock splits” is becoming more and more popular and it is favored by investors.The high stock dividends and low cash dividends have become a feature of the Chinese capital market.Stock dividends not only can meet the needs of investor,but also can reduce the cash dividends payment,keep corporate funds which can provide financial support for investment in high-return projects.What's more,stock dividends payment can increase the scale of capital stock and enhance the liquidity of the stock,which benefits the company's add-issuance of new shares and refinancing.As a result,stock dividends can provide favorable conditions for the expansion of company size.Growth Enterprises Market Board appeared after the Main Board Market and SME Board Market,but it was playing an increasingly important role.It improved and perfected the Capital Market of China.To the most majority of GEM Listed companies,their size of capital stock is small,but the growth ability and profit ability are strong.So they have a need to expand the size of company.They need to increase the size of capital stock,increase the liquidity of the stock,which is easier to raise funds which are used to expand the size of the company.Therefore,Stock dividends are very popular in the GEM companies.“High stock dividends and stock splits” is also common in the GEM companies.In additions,companies with high growth are easy to fill right after Ex-Dividend Date,and then they can increase the companies' market value.In this condition,the reasonable market value management can be carried out.As a result,the research on “High stock dividends and stock splits” of the GEM listed companies will be significant and the practical significance can not be ignored.In this text,normative study and case analysis are used to discuss the stock dividend policy of “High stock dividends and stock splits” about the GEM companies.This article is composed of five parts.The first part mainly introduces the research background and significance,literature review,research ideas,research methods and the basic framework of this article.In the second part,this article states the related theories about “High stock dividends and stock splits” of the GEM listed companies briefly,and introduces related concepts of “High stock dividends and stock splits”,the main characteristics of the GEM listed companies,the motivations and economic consequences of “High stock dividends and stock splits” in the GEM companies and the theoretical basis of “High stock dividends and stock splits”.The third part cites a GEM listed company,SIASUN Robot & Automation Co.,Ltd.(simply “Robot Company”)which carried out “High stock dividends and stock splits” as a case.In this part,this article introduces the background and basic situation of Robot Company's “High stock dividends and stock splits”.The fourth part starts to study and analyze this case.This part analyses strategic background,strategic motivation,implemented conditions and the economic consequences of Robot Company carrying out “High stock dividends and stock splits”.The fifth part draws the conclusions and puts forward the policy suggestions.Research conclusions:(1)High growth of GEM companies is the necessary condition of “High stock dividends and stock splits”.(2)The rational use of “High stock dividends and stock splits” of GEM companies can achieve effective market value management.(3)GEM companies' “High stock dividends and stock splits” can enhance the company's ability of capital operation.Policy suggestions:(1)GEM companies should utilize “High stock dividends and stock splits” rationally.(2)Investors need to improve their own investment philosophy and evaluate “High stock dividends and stock splits” objectively.(3)Regulatory agencies should strengthen the market regulation of “High stocks dividend and stock splits”.