A Study On The Motivation And Economic Consequences Of High Turnover In SW Companies

For investors,listed companies' annual dividend distribution policy is closely related to their immediate interests.The dividend policy of "high delivery and transfer" implemented in the dividend distribution process has attracted investors' focus and attention.This dividend policy is a listed company Increase the share capital through bonus shares of undistributed profits or the conversion of capital reserve into share capital.Most external small and medium investors use corporate announcements and dividend policies to infer companies' profitability.Still,it is challenging to understand companies' actual operating conditions due to information asymmetry and other reasons.Therefore,some listed companies use the "high delivery and transfer" dividend policy for speculation and promotion.For stock prices,some companies' transfer ratio far exceeds the actual demand for company performance growth and equity expansion.In the past few years,the transfer ratio has continued to hit new highs,reaching a maximum of 30 shares for every ten shares.Compared with cash dividends,"high delivery and transfer" is more likely to trigger market speculation.But in fact,"high delivery and transfer" has no direct relationship with the performance of listed companies,nor can it enhance the value of listed companies.It is hoped that the research in this article will give some enlightenment to the introduction of dividend policies by listed companies so that "high delivery and transfer" will return to its essential role in enhancing liquidity and reducing stock prices,which is of positive significance for the long-term stable development of the securities market.In my country,there were many leading board companies in the early stage of implementing the "high delivery and transfer" dividend policy.At present,it has shifted from leading board companies to small and medium-sized boards and growth enterprise market.The number of small and medium-sized boards is the largest,and the average proportion is the largest.The role is to expand equity.Small and medium-sized board companies have a smaller equity scale than the primary board market,and they prefer to use the "high delivery and transfer" dividend policy.The SW company has carried out two "high delivery and transfer" for two consecutive years.Each time,it was accompanied by significant shareholders' reduction of arbitrage,a representative case of major shareholders using "high delivery and transfer" to transfer benefits.Moreover,the purpose of SW company's "high delivery and transfer" is not simply to expand the share capital.Its motive is to cover the lifting of the restricted shares and cooperate with major shareholders to reduce their holdings.In the absence of performance support,the company's implementation of "high delivery and transfer" will cause the announcement of stock prices Shows a rapid upward trend,and during this period,the "high delivery and transfer" stocks have significant positive excess returns,and they have carried out profit transfer during multiple high-send transfers to maximize their interests.However,it has caused many adverse effects on the securities market,small and medium investors and listed companies themselves.Finally,based on this research results,the securities market regulators,small and medium investors,and listed companies have made corresponding suggestions.Regarding whether companies issue "high delivery and transfer" or not,the regulatory authorities initially did not need to intervene and regulate this,but only need to strengthen self-management by listed companies because the "high delivery and transfer" hype incidents frequently occur in my country's capital market.Therefore,in November 2018,the Shanghai and Shenzhen Stock Exchanges issued the "Guidelines for Disclosure of Information Disclosure of Listed Companies" to effectively regulate and guide the behaviour of "high delivery and transfer".Combining the guidelines,on the one hand,it is hoped that companies in the process of transformation and growth will use the "high delivery and transfer" dividend policy to plan for the long-term development of the company,so that listed companies and the securities market can develop healthily,and on the other hand,to cooperate with shareholders from the "step-on-line" transfer.Shareholding reduction,infringement of the interests of small and medium investors,and loopholes in regulatory policies have made some targeted suggestions to promote the healthy development of the capital market and protect small and medium shareholders' interests from infringement.