High Split,Financial Performance And The Reduction Of Insiders

Dividend distribution policy,as one of the important business decisions of listed companies,is related to the stock market price,the long-term development of the company and the interests of shareholders.Since 2013,the intensity of the dividend distribution policy announced by listed companies has gradually strengthened.At one time,the situation of transferring 30 shares per 10 shares has appeared,and the phenomenon of high split has become prominent.The stock dividend and stock turnover of listed companies are only the internal transformation of owner's rights and interests,but it has aroused the pursuit of small and medium-sized investors.After the announcement of high delivery and transfer by listed companies,it is always accompanied by the rise of the stock price of listed companies and the reduction of insiders' stock holdings.The high split scheme of listed companies provides convenience for large shareholders and the company's supervisors to reduce their cash holdings.At the same time,in the listed companies with high split schemes,the financial performance of the listed companies is uneven,which disturbs the effective order of the capital market and fails to achieve the effective allocation of resources.This paper takes the listed companies in Shanghai and Shenzhen A-share from 2013 to 2017 as the research object which announce the high split scheme,whose insiders also reduced their shares from 2014 to 2018.Firstly,we use normative analysis to sort out the relevant literature and elaborate the related theories,mainly involving information asymmetry theory,signal transmission theory,liquidity theory and greeting theory;secondly,through the elaboration of the current phenomenon of high-speed transfer and the insiders' stock reduction,we preliminarily draw the conclusion that there is a positive relationship between high split and insiders' stock reduction.Secondly,we use Guo Taian database and Wind database to obtain the original data about each variable.On the basis of data filtering and data processing,we use SPSS statistical software to carry out regression analysis to verify the three hypotheses in this paper.The conclusions of this paper are as follows: compare with listed companies that do not give high split,companies that give high split whose insiders reduce more stock;secondly,amongmany listed companies that have issued high split schemes,the greater the intensity of the implementation of high split schemes is,the larger the scale of insider stock reduce;and the positive relationship between high split and insiders' stock reduction is influenced by financial performance.Finally,after analyzing and verifying the phenomena of high split in capital market and insider's taking advantage of the opportunity to reduce shares,this paper puts forward some suggestions: listed companies should formulate reasonable dividend distribution,standardize information disclosure system,strengthen risk awareness education to small and medium-sized investors,and improve the accounting treatment of stock split.The innovation of this paper is to expand the scope of the existing research on the subject of shareholding reduction,and bring the directors,supervisors and senior managers of listed companies into the scope of the study,which means,the insiders include the major shareholders with a shareholding ratio of more than 5% and the directors of listed companies,also analyze the impact of high split on the behavior of shareholding reduction of insiders.It also takes financial performance as a moderating variable to verify the moderating effect of financial performance on the relationship between transfer and insider stock reduction,which enriches the existing research to a certain extent.