A Case Study On The Tunneling Of Major Shareholders Under "Large Stock Dividend" Of Yongda Group

With the expansion of the market scale in the small and medium-sized plate,the numbers of companies that have chosen to list in the small and medium-sized plate is gradually increasing.Usually,the CAPITAL is very small when the small and medium-sized plate companies are listed.Restricted by this feature,the proportion of companies in the small and medium-sized plate to carry out "large stock dividend" is relatively very high.The listed companies grant dividends to repay all investors through the form of "large stock dividend",which is also widely welcomed by minority investors in the market.However,the numbers of companies carrying out "large stock dividend" is gradually increasing and the types of companies conducting "large stock dividend" are also uneven.In this case,the phenomenon of the mismatch between the proportion of "large stock dividend" and performance is becoming more and more serious.Parts of the listed companies still implement the "large stock dividend" under the circumstance of a decline or a loss in performance.In addition,after the "large stock dividend" announcement is issued,the phenomenon of the stock-selling of major shareholders is also increasing.Parts of the listed companies are short of good performance support when implementing the policy of "large stock dividend",and the performances of those companies are very poor after implementing the policy of "large stock dividend".However,their major shareholders still carry out the "large stock dividend" after the restrictions on the sale of shares have been released so as to attract minority investors,stimulate the stock price of the company to rise,and then sell its stocks on a large scale in the secondary market to maximize the profits from the selling of stocks.In this case,the distribution motivation of the "large stock dividend" is seriously alienated,and the "large stock dividend" becomes the tool of the tunneling of the major shareholders gradually.Therefore,this paper adopts the case-study method,selects the Yongda Group,one enterprise implementing "large stock dividend" in small and medium-sized plate as the research object,and combs the behaviors of the major stockholders before and after the Yongda Group conducts the policy of "large stock dividend" so as to analyze the behaviors of the major shareholders deeply.Firstly,this paper analyzes the timing selection of the "large stock dividend" after the release of the major shareholders' restricted shares of the Yongda Group,and analyzes the motivation of the major shareholder's proposal of "large stock dividend" combining the feature of "large stock dividend" and the behavior of the major shareholders.Secondly,this paper analyzes the rationality of the "large stock dividend" from the perspective of transfer ability,company performance,business risk,etc.Thirdly,this paper applies the method of event research to test the market reaction of "large stock dividend".In addition,this paper analyzes the liquidity of the company's stocks after the announcement of "large stock dividend".On the basis of these,this paper further analyzes the implementation of the major shareholders' tunneling under the policy of "large stock dividend".Finally,this paper analyzes the economic consequence of the major shareholders' tunneling.Through the research of this paper,the following conclusions are drawn eventually as follows: Firstly,the "large stock dividend" after the release of the restricted stocks is a great opportunity to increase shareholders' wealth.Secondly,The operation capacity in lack of the performance support for the "large stock dividend" is insufficient.Thirdly,The "large stock dividend" has masked the major shareholders' tunneling.Finally,The timely suspension of the locking transfer price is helpful for the major shareholders to achieve high benefits.The last,this paper puts forward suggestions as well as the enlightenments aiming to the problems exposed by the "large stock dividend" implemented by Yongda Group.It is hoped that this paper can be helpful for minority investors to identify the company of "large stock dividend".Meanwhile,this paper also hopes to provide the reasonable suggestions for strengthening the supervision and management for the abuse of "large stock dividend" of the listed companies in the small and medium-sized plate.