A Study On The Motivation Of "High Send And Transfer" Of Listed Companies And Major Shareholders’ Selling Behaviors

In recent years,Chinese listed companies have become keen to the “high send and transfer” dividend policy,and the market has also regarded it as good news and actively responded to the concept.It is worth noting that,while the stock price of "high send and transfer" stocks has risen,there are also phenomena in which some of the company’s major shareholders sell shares in the secondary market.From the perspective of major shareholders’ behavior of selling shares,this paper explores whether listed companies will launch "high send and transfer" dividend policy before major shareholder planning to sell their shares and leverage the positive market effect of "high send and transfer" to cooperate with large shareholders reducing their holdings at high price levels.On this basis,the market performance changes before and after the “high send and transfer” are also studied to prove that the “high send and transfer” under the influence of large shareholders may become a tool for the transfer of interests and seriously infringe the interests of small and medium-sized shareholders.This paper selects 2007-2016 A-share listed companies which released stock dividend plans as research samples,and comprehensively uses the event research method,IV-Probit model,2SLS model,parametric test,and other measurement models to study the market reaction,motivation and performance changes of “high send and transfer”.The empirical results show that: first,the “high send and transfer” has a significant announcement effect,so that the major shareholders can obtain a significant positive cumulative abnormal return during a period;second,the planned stock selling of large shareholders will significantly increase the possibility of the listed company launching a “high send and transfer” dividend policy and its proportion,indicating that the “high send and transfer” under the influence of large shareholders will become a tool to meet the needs of stock selling;third,the long-term performance of the company will significantly deteriorate and the long-term cumulative abnormal return rate will be significantly negative after the “high send and transfer”.