A Case Study Of High Stock Dividend Of JINFA LABI Maternity&Baby Articles Corporation

High stock dividend is a method of dividend distribution.It is only the internal transfer of the ownership interest of the company,which does not have any impact on the company's operating conditions and other fundamental.However,there is a situation that the investors eager to speculate the High stock dividend annually in the capital market.In 2015,there is a case about per 10 stocks trans 200 stocks.Even though the regulators strengthen regulation since 2015,there are 313 public companies implementing high stock dividend policy in 2017.This paper will choose public company JINFA LABI maternity&baby articles corporation to study its “high stock dividends” policy in 2018,then finding out the reason of policy.It is helpful for public companies to formulate dividend policy and investors to build the rational invest idea.And it also helps the regulators complete the laws.This paper uses three methods to study JINFA LABI maternity&baby articles corporation to study its “high stock dividends” policy in 2018 respectively.According to the analysis of the dividend ability,earning ability,operating ability and the comparison with the children's garment industry,I find that the industry has receive a great improvement in the past years,however,the improvement of the company is not positive,the prosperity of major business falls behind the industry's especially after 2015.It turns out that the performance in 2017 can not afford the high stock dividend in 2018.According to above analysis and case study method,this paper would conclude the most possible reasons of high stock dividend from,interior and external,two aspects:(1)improving the attention a mobility of the stock;(2)catering the command of reducing holding-shares and stock pledge of the controlling shareholders;(3)avoiding the constraint of the new policy.This paper finds out that the investors can only get the abnormal returns in the announcement date of preplan but not the announcement implementation date through event study method.It is possible for external investors to get a abnormal returns by using public information.At last,according to the analysis above,this paper wants to give some advices to the public companies,investors and regulators.