Study On Interest Transfer Under The Dividend Policy Of "High Transfer" In Kangzhi Pharmaceutical Industry

Dividend distribution is a very important link in the process of production and operation.If enterprises are in the stage of expansion and development,they need to retain appropriate funds to provide financial support for future operations.High transfer can not only achieve the purpose of retained funds,but also meet the requirements of investors for dividends.Therefore,"high transfer" brings financing convenience for small and medium-sized enterprises,and at the same time helps shareholders to find high-quality stocks,so as to achieve win-win,mutually beneficial.However,some enterprises do not implement "high transfer" for the purpose of mutual benefit and win-win.As "high transfer" stocks are gradually favored by investors in China's capital market,stock prices can rise in a short time.Some large shareholders use the speculative mentality of small and medium-sized shareholders to speculate on "high transfer" concept stocks and then reduce their holdings at a high level to achieve profit transmission.Although not all "high transfer" is accompanied by the phenomenon of interest transfer,it is enough to attract the attention of scholars at home and abroad.Through consulting a large number of documents,this paper studies the case of "high delivery" in Kang zhi Pharmaceutical Industry,and finds that although "high delivery" can transmit good information to enhance stock prices,it can not actually increase the value of enterprises,only the internal changes of owners 'rights and interests,it can not explain that enterprises have better development prospects,nor can it increase shareholders' wealth.After introducing the research background and significance,related concepts and theoretical framework,this paper mainly focuses on the motivation,implementation process and results of Kang zhi Pharmaceutical Industry's implementation of "high transfer",the reasons for its success,and the adverse impact on the capital market.This paper studies the "high transfer" of Kang zhi Pharmaceutical Industry,the high reduction of Hong shi's investment and a series of adverse impacts on the capital market of this event.It analyses the possibility of utilizing the "high transfer" of profits for Chinese enterprises,and tries to put forward countermeasures for small and medium-sized investors and regulatory agencies.Since its listing in 2010,Kang zhi Pharmaceutical Industry has been operating poorly and its profitability is poor.Controlling shareholders should withdraw their high-level cashrather than invest a large amount of capital in a company with poor profitability to obtain lower returns.Hence,Kang zhi Pharmaceutical Company launched a "high transfer" scheme to raise the stock price,cooperate with the lifting time of restricted shares,prepare for cash arbitrage,in order to prevent the stock price collapse after the withdrawal of large shareholders' funds from the enterprise,and initiate employee stock ownership of the company.As a result,it is inevitable that Kang zhi Pharmaceutical's share price will plunge,the large shareholders have sold out and withdrawn their capital,and the employees and other retail investors who hold shares are locked up.China's capital market regulatory mechanism still needs to be improved.The large shareholders' interest transmission behavior of listed companies is common.The speculative mentality of small and medium shareholders will be exploited and rational investment should be made.Although the "high delivery and transfer" market has attracted the attention of relevant regulators and issued corresponding policies to regulate it,no matter how the regulators introduce new policies to strictly regulate the market,capitalists out of self-interest will find various ways to circle money for themselves.Therefore,investors can find the real purpose of enterprises through the public information issued by enterprises,and the regulatory mechanism is even better.It is necessary to formulate a reasonable and effective system with high efficiency.Researchers attach great importance to the "high transfer" and the behavior of conveying the interests of the major shareholders behind it.