Case Study Of Hareonsolar Company Of High Stock Dividends In A Share Market

In Chinese securities market,the announcement of “high stock dividends” is regarded as a good news,and investors are also very much prefer this dividend policy.However,both send shares or convertible are internal changes in shareholders' equity,and “high stock dividends” will not have any effect on the value of the company,put it another way there is no economic meaning.Nevertheless,with the increasing proportion of delivery,investors are also more interested in sending investment to the stock.In recent years,owing to a high proportion of malicious sent has came,investors are suffered more losses.This paper mainly focuses on the motivations and economic consequences of the “high stock dividends” of listed companies,and analyzes the market effect and influence brought by this policy so that comprehensive analysis of the “high stock dividends” policy of listed companies in China.At first,this article introduces the background and significance of this topic.Next,the relevant theory and literature of this policy are summarized.And then,this paper chooses Hareon Solar Technology Co.Ltd as a case to introduce its “high stock dividends” process.Finally,combined with the relevant theory,we analyze the motivation and economic consequence of the company sends turn.The study found that Hareon Solar Technology Co.Ltd is not fully equipped with “high stock dividends” conditions,and the company implemented the dividend policy is not to return to all shareholders,and in order to manipulate the stock price,improve stock liquidity,and then to get more cash at the time of sale stocks,and the dividend policy of “high stock dividends” like this case is very unreasonable.The study also found that “high stock dividends” does have significant positive excess returns,but the excess returns are mainly in the pre-announcement date and ex-dividend days before the day.And malicious “high stock dividends” not only to investors a huge loss,listed companies may also be malicious “high stock dividends” and pay more cost.At the end of the article is the summary of the full text,summarize the conclusions of the full text,and the conclusions of the article to the regulators and investors to make some suggestions.