Research On The Motivation And Market Reaction Of Hebang Biotechnology's "high Delivery And Transfer" Under The Control Of Dividend Disclosure

The issue of dividend policy has always been the focus of attention.In recent years,there have been more and more companies that distribute dividends in the form of “the high ratio stock dividend and stock splits”.This kind of dividend distribution has been sought after by investors.However,there are some companies that use this form for their own profits,infringing the investors.With the improvement of the dividend disclosure policy,the number of companies that use this form has been significantly reduced,but there are still some companies that are use this method.This paper studies the motives and market reactions to implement “the high ratio stock dividend and stock splits” under the control through case study method and event research method,and draws corresponding conclusions and suggestions.Since the listing of Hebang Biotech,it has carried out three high-rate stock dividend and splits in succession.Among them,under the control of dividend disclosure in 2016,the third was implemented.This paper first compares and analyzes the dividend distribution and the scale of stock dividend and splits of listed companies before and after the disclosure of dividends.Secondly,in the case of Hebang Biotech that continue to carry out “the high ratio stock dividend and stock splits” under the control of dividend disclosure,this paper analyzes the ability of Hebang Biotech to use “the high ratio stock dividend and stock splits” under the control.It is found that it does not have High retention earnings,high stock prices,high performance and low share capital.Finally,it analyzes the real motives and the market reaction caused by the implementation of “the high ratio stock dividend and stock splits” under the control of dividend disclosure and lack of capacity.Conclusions: First,the real motives that Hebang Biotech implementing “the high ratio stock dividend and stock splits” under the control of dividend disclosure and lack of ability conclude: helping the controlling shareholder to reduce the stock and weakening the impact of the exchange’s letter on the stock and catering to Equity Private Placement investors.And there was a positive reaction in the market.Second,there are certain loopholes in the current regulatory policies in the market,and the supervision work is not in place.Third,the positive reaction indicates that investors still have irrational investment behavior.