Research Of The Motivation And Economic Consequences Of JINFA LABI Maternity&baby Articles Corporation High Stock Dividends

In recent years,"high delivery" has become a hot topic of speculation in Chinese capital market.However,it is actually the adjustment of the internal structure of shareholders' equity,which has no actual impact on the enterprise value,profitability and investors' income.But listed companies that have issued a "high delivery" policy are still popular among investors,which makes more and more listed companies choose the policy for dividend distribution.Generally,companies will choose the "high delivery”policy when they have good operating performance,sufficient capital reserves and expected future development potential.However,the " high delivery”policy of listed companies are not always carried out under the above conditions.There are multiple motivations for the policy,and the economic consequences are also different.This kind of dividend policy can sometimes become a tool for large shareholders to satisfy their personal interests,and the interests of small and medium investors may sometimes suffer as a result.Therefore,it is of great significance to study the motivation and economic consequences of the "high delivery" of listed companies.Discussing the motivations and economic consequences of listed companies' "high delivery" is conducive to standardizing the dividend behavior of listed companies,protecting the interests of small and medium investors,and promoting the healthy development of the capital market.Based on sorting out relevant theoretical literature,this paper taking the case of the “high delivery” incident of the JINFA LABI maternity&baby articles corporation as a case study and using the normative research method,case analysis method and event research method to study its implementation of the "high delivery" dividend distribution policy,?Firstly,this paper introduced the case of the company's "high delivery",including the introduction of the company,the status of dividend policies over the years,and the implementation process of "high delivery".Secondly,by analyzing the transfer ability,profitability and growth ability of the company and comparing with the new regulations issued shortly after the company's "high delivery",it is found that the company did not have the ability of "high delivery".Thirdly,the paper analyzes the motivation and economic consequences of the company's implementation of the "high delivery" policy.Finally,the paper draws a conclusion and puts forward some suggestionsThe study get some conclusions: Firstly,the JINFA LABI maternity&baby articles corporation does not have the conditions of "high delivery" and investors should treat "high delivery" dividend policy rationally.Secondly,the main motivation of the "high delivery" of the company is to deliver good news,improve stock liquidity,meet the requirements of large shareholder reduction and equity pledge,and avoid strict market supervision;Large shareholders of listed companies may use "high deliveryr" to seek private interests.Thirdly,"high delivery policy" will bring short-term excess return,but if there is no good performance to support,the excess return rate will only exist in a short time,and the company's stock price will fall rapidly after the event,which may have adverse effects on the company itself and small and medium investors.Because of the fact that the company does not have the implementation conditions of "high delivery",its stock price did not show a growth trend after the sharp fall on the ex right and ex dividend day,but slowly fell,only accumulating abnormal returns in the short term,which also affected the company's performance and damaged the interests of most small and medium-sized investors.