GEM Listed Companies High Send And Transfer And Major Shareholders Reduction

As an important part of the information disclosure of listed companies,the dividend distribution policy directly shows the company’s operating performance to a certain extent,which is an effective information for investors to evaluate the company’s future development prospects of the company.However,the dividend distribution policy of listed companies in China has long been characterized by “pay greater attention to the send-and-transfer instead of cash dividend”.The majority of investors in China’s securities market are also keen on the dividend distribution policy of sending shares,and high-send-and-transfer-dividend policy usually leads to market speculation.China’s GEM listed companies have high growth and are strongly supported by the state.Although the scale is small but the development is rapid,they are highly concerned by the capital market.Faced with the rapid development of capital demand,GEM listed companies are more inclined to introduce high-send-and-transfer-dividend policy rather than cash dividend policy.However,it is worth noting that the high-send-and-transfer-dividend policy announcement is often accompanied by huge reductions by major shareholders.Listed companies use high-send-and-transfer-dividend to convey favorable information,thereby raising the stock price,increasing the profit margin for large shareholders to reduce their holdings,leading to high-send-and-transfer-dividend policy to be an effective tool for major shareholder reduction,and brings opportunities for large shareholders to convey their interests and seriously infringes on the legitimate interests of small and medium shareholders.This paper takes the GEM listed companies that announced the dividend distribution plan in 2011-2018 as a sample,and studies the relationship between the high-send-and-transfer-dividend and major shareholder reduction by combining the relevant data of the major shareholder reduction of the GEM listed companies.On this basis,the paper discusses the adjustment effect of power balance with shareholder structure between them,and further studies the relationship between the high-send-and-transfer-dividend and major shareholder reduction in family business and non-family business.At the same time,it also studies the impact of the legal system environment on the relationship between them.The research in this paper finds:(1)There is a significant positive correlation between the high-send-and-transfer-dividend of the GEM listed companies and the reduction of the shareholder’s intentions.When the listed companies launch the high-send-andtransfer-dividend distribution policy,the greater the shareholder’s intention to reduce their holdings is stronger.(2)There is also a significant positive correlation between the high-send-and-transferdividend ratio and the reduction of the shareholder’s,that is,the higher the proportion of the company’s send-and-transfer,the stronger the shareholder’s intention to reduce the holding,the greater the scale of reduction(3)High power balance with shareholder structure can weaken the large shareholder’s subsequent shareholding reduction behavior to a certain extent.The stronger the power balance with shareholder structure,the smaller the shareholder’s intention to reduce.However,the balances have less impact on the scale of large shareholders’ reduction.(4)Further research found that compared with non-family enterprises,the correlation between the high-send-and-transfer of family business and major shareholders’ reduction is more significant,indicating that there are more serious problems of large shareholder reduction in family business.In addition,the relationship between high-send-and-transfer and major shareholders’ reduction is not significant in areas with good legal environment,which indicates that the legal system environment can inhibit the reduction of large shareholders.This paper enriches the research results of high-send-and-transfer-dividend and major shareholder reduction to a certain extent,and proves the opportunistic behavior of large shareholders to reduce arbitrage on the basis of high-send-and-transfer.According to the empirical results of this paper,we can get the following enlightenment: A reasonable dividend distribution policy should be established based on the growth of financial performance,so as to avoid the transfer of high-sendand-transfer-dividend into a tool for large shareholders to infringe on the interests of small and medium-sized shareholders;secondly,the majority of small and medium-sized investors should also be vigilant against the truth behind the transfer of high-send-and-transfer-dividend,and should not blindly follow the trend of high-send-and-transfer;Finally,the regulatory authorities should also make effective provisions for the formulation and disclosure of dividend distribution plans for listed companies,and limit the behavior of large shareholders to use high delivery to reduce shareholding.