The Motivation And Economic Consequences Of Applying High Stock Dividend Policy Of Listed Companies On GEM

The GEM was opened in the Shenzhen Stock Exchange in 2009.Since then,the dividend policy of the listed companies has been strong.The dividends have been overshadowed by the main board and attracted the attention of investors.The characteristics of GEM companies are small-scale capital stocks,with strong profitability and development capability,equippedwith ample room for growth in the future.Adopting the "high turnover"equity dividend policy means that the company's internal shareholders' equity structure adjustments and changes are based on a high proportion of share-sending or equity conversion.The total stockholder's equity will not change and the company's value will not change.As a dividend distribution method for listed companies,theoretically speaking,"high transfer"iscapable of transmitting positive information with broad development prospects and huge room for growth to create a good image.On the other hand,it can show that the company has good business performance as a support condition,which will ultimately achieve a virtuous cycle of"send-transfer-exclusion-filling".For most listed companies on the GEM,which are in the initial stage,operating well and without the need to scale expansion,the"high transfer" stock dividend policy is conducive to the realization of their growth goals and reduce the outflow of cash dividends.It's the preferred plan for the dividend distribution of listed companies.However,with the continuous increase in the percentage of companies listed on the GEM Board in recent years,the enthusiasm of investorsfor investment has also increased.There are frequent instances of hostile GEM listed companies that do not have transfer conditions and hold special purpose.The number of investors who have suffered tragic losses due to malicious "high turnover" is also numerous.This article takes the "high-send transfer" stock dividend policy of GEM listed companies as the research direction,taking Yinbang Co.,Ltd.as an example,and focuses on analyzing the reasons behind the implementation of malicious "high transfer" stock dividends and the economic consequences.The market effects and impacts of "high delivery" have provided a comprehensive and detailed analysis of the "high transfer" stock dividend policy of GEM listed companies.The study found that:Yinbang shares are not fully qualified to implement the "high transfer" stock dividend policy.The purpose of adopting "high transfer" is not to return shareholders,but is based on the needs of stock price manipulation and stock liquidity improvement.Further reductions in cash and cash are available to prepare.Therefore,Yinbang's "high transfer" stock dividend policy has many irrationalities.In addition,the study further found that Yinbang shares had significantly positive excess returns after adopting "high transfer",but only appeared on the day before the proposal announcement date and the ex-rights ex-date.Malicious "high turnover" not only causes small and medium investors to suffer huge losses,but also lead the listed companies on the GEM to pay higher costs.