The Motivation And Effect Of High Cash Dividend Of GEM Listed Companies

The growth enterprise market(GEM)of China has played a vital role in Chinese stock market system since its foundation in 2009.As an important way of financing for innovative and high technology listed enterprises,GEM should have characteristics of "high-tech,high-growth,high-earnings",but the fact is the "three highs" of GEM has gradually evolved into "high-price,high-p/e ratio,high-raise".Combined with high volatility without price limit,GEM has become a hot spot for speculators to chase profits,Which is obviously against the intention to create GEM.This dissertation believes that the further exploration of the profound reasons behind the problems in GEM is the first step to reverse its development erroneous zone,And one of the problems existing in the gem is its high cash dividend distribution compared with main board market and similar GEM market abroad,which can not be explained by traditional dividend theories.This dissertation has done a breakthrough on the traditional "structure-behavior-performance" paradigm and analyzed the motivation of high cash dividend policy of listed enterprises in GEM and its subsequent effects through the perspective of stock market performance.Based on behavior dividend theory and signaling theory,we have created the stock price movement model and the dividend decision model and analyze a series of problems including the existence of the momentum effect the GEM,the motivation of high cash dividend policy of listed enterprises in GEM agent and the reaction of cash dividend announcement.Finally,we have proved the existence of the momentum effect the GEM,the significant explain power of stock market performance towards high cash dividend policy and the strong difference in stock market performance before and after cash dividend announcement.From which we can infer that the decision makers in the cash dividend policy of listed enterprises in GEM has significant market orientation and cash dividend policy in a certain period can change the stock market performance.The conclusion of this dissertation can be applied to the further research about domestic behavior dividend theory and dividend signaling theory and can be used as a reference for the investing and dividend decision making process of GEM related parties,which can finally help improve the frame of the GEM and lead to the further promotion of GEM.