The Research On The Motivation And Consequences Of “High Stock Dividends”

In the capital market of China,“high stock dividends” has always been the topic of media competing enthusiastically.The relevant stocks are highly sought after by investors.Therefore,the management of listed companies prefer the “high stock dividends” profit distribution plan.The implementation of “high stock dividends” can save more funds to protect the liquidity demand brought by the expansion of the company's operation scale,and at the same time cater to investors' preferences.Based on the company's strategic development perspective,“high stock dividends” can achieve the purpose of equity expansion at low cost and help high-growth enterprises to solve the problem that the scale of equity does not match the growth rate of the company.;on the other hand,it can lower the stock price and increase the liquidity of the stock.After the ex-dividend date,the share price will rise sharply due to the weight-filling effect,which will help the management to manage the market value.The “high stock dividends” dividend policy lays a good foundation for the company's follow-up financing activities to protect the company's future development,and has a significant positive impact on the future development of many small-capital but high-growth companies.In this paper,the case analysis method is used to conduct a comprehensive and systematic study on the dividend policy of “high stock dividends” in Tianqi Lithium Corporation.The main research contents include: Firstly,using the event research method,the market reaction of the “10 to 28” profit distribution plan of Tianqi Lithium Corporation on the announcement date and the ex-dividend date is discussed.Secondly,the motivation for implementing “high stock dividends” is explained from four angles.Thirdly,according to the indicators of profitability,growth and transfer ability,it is judged whether it has the conditions of “high stock dividends”;finally,it expounds the impact of the “high stock dividends” dividend policy of Tianqi Lithium on Share right pledge,issue bonds and equity incentives.Based on the case study of Tianqi Lithium Corporation,it is concluded that:(1)The “high stock dividends” dividend policy of listed companies needs growth performance support.(2)The “high stock dividends” dividend policy helps high-growth companies to manage market capitalization.(3)The “high stock dividends” dividend policy have an effective short-term abnormal return effect.(4)The “high stock dividends” dividend policy helps to increase the executive income of the equity incentive plan.The research provides new ideas for studying the “high stock dividends” behavior of listed companies,starts with the study on the “high stock dividends” dividend policy,the representative “high stock dividends” event of Tianqi Lithium Corporation in 2015 was selected as the research object,and the test found that the high-growth enterprises “high stock dividends” motivation,characteristics and economic consequences.It provide enlightenment for listed companies to formulate dividend policies,investors' rational investment and policy supervision.