Research On The Motivation And Consequences Of High Stock Dividends Of Gem Companies

As one of the key points of financial management,dividend distribution policy has been developed and innovated.Although there is no uniform standard for dividend distribution policy of each company,dividend policy is still widely concerned,and the information behind it is more popular among investors.But some market mayhem has ensued.The company's "high stock dividends" behavior is one of the annual grand finale.In recent years,the ethos of "high stock dividends" prevails in the a-share market.Especially as A growth stage gem company,it has repeatedly set A new high for transfer.Generally speaking,there are many motivations for enterprises to issue the "high stock dividends" plan,such as expanding capital stock,increasing stock liquidity,transmitting positive signals,cooperating with the lifting of restrictions on share sales,and reducing the holdings of major shareholders for capital operation.However,according to the research of domestic and foreign scholars,it is found that the behavior of "high stock dividends" has a positive reaction in the short-term capital market,but has no positive influence on the business condition in the long run.On the contrary,the performance becomes dismal due to the poor reputation and other reasons.T group,in the case of this paper,is in the stage of business transformation.Considering the influence of such factors as the transmission of profit information and the expansion of share capital,the bid up of share price to a high level,etc.It actively issues the announcement of "high stock dividends" plan.In less than two weeks,the group's actual owners frantically reduced their holdings of shares,cashing out at high prices for a total profit of rmb1.4bn.After a long period of time,the stock price continued to decline,so that retail investors become the undertaker,a serious violation of their rights and interests.The poor reputation has brought long-term negative effects to T group.In this paper,under the background of a large number of listed companies on the gem "high stock dividends",through the combination of theory and case study,the time as the main line of study,to T group "high stock dividends" behavior motivation and consequences as the research theme.Firstly,T group was analyzed from the four aspects of stock price,growth,capital accumulation and capital stock before "high stock dividends",so as to judge whether it has the ability of "high stock dividends".Secondly,the internal and external reasons for the "high stock dividends" of T group are studied,especially the close correlation between the mass reduction of the major shareholders and the lifting of restrictions on share sales.Then,the adverse consequences of "high stock dividends" are studied from the perspective of market reaction and performance.The final conclusion is as follows: gem company "high stock dividends" behavior may have bad intentions;"high stock dividends" near the time point of limited selling shares unrestricted transmission of bad signals;Bulk transactions for the "high stock dividends" with large shareholders to reduce the paving way.And for the company,investors and regulators three main body proposed recommendations.