Research On The Cause And Effect Of High Turnover In GEM Companies

In recent years,the phenomenon of high transfer has become a major focus in China's capital market.The listed companies in China have introduced the dividend policy of high transfer one after another.Not only small and medium investors are keen to buy the stocks of high transfer,but also the concept stocks of high transfer have appeared.And high in the implementation of the company sends turn found the gem companies accounted for the vast majority,because of the gem companies equity generally smaller than the main board,and because it is a high and new technology enterprise,has the characteristics of high growth,and can use high to turn in the rapidly expand the scale of the company's equity at the same time,positive signals to the outside world.Actually high sends turn is the nature of the undistributed profit and the capital reserves turn add equity,just internal adjustment,the owner's equity but due to high to send transfer caused by short time rising share prices,small and medium-sized investors hoping to get profits,implement high sends turn of medium and small investors in listed companies is the speculation,as the implementation of the indemnification of the tool.Therefore,in 2017,the CSRC gradually increased the supervision of the high transfer phenomenon.Under the supervision of the regulatory authorities,the illegal phenomenon accompanied by the high transfer gradually subsided,but it does not mean that it disappeared.The future trend of the high transfer still needs continuous attention.This paper chooses Fei Rongda Technology Co.,Ltd.,which has carried out three consecutive high transfers since it was listed on the Growth Enterprise Market in 2017,as the case study object.Under the guidance of signal transmission theory,liquidity theory,price illusion theory,dividend payment and expansion theory and capital stock theory,First of all,from the company's net profit growth,transfer ability and growth and other aspects of Fei Rongda's transfer ability to analyze,so that Fei Rongda to carry out high transfer in addition to achieve equity expansion and transmit the company's development of good signals,but also to carry out market value management and help the enterprise expansion and refinancing motivation.Then,this paper analyzes the effect of high-transfer on Fei Rongda from two aspects: market effect and financial performance before and after hightransfer.By calculating the excess rate of return and cumulative excess rate of return near the window period of the event,the analysis shows that the excess rate of return and cumulative excess rate of return generated in the first high transfer on either the announcement date of the plan or the ex-dividend date are more intense than those generated in the last two transfers.This paper analyzes the financial performance before and after the high transfer from four perspectives: per share index,profitability,debt paying ability and operating ability.The high transfer further expands the share capital of the company,obtains good conditions for the expansion and financing of the enterprise,and the continuous rise of the profitability of the company brings a positive impact on the enterprise.Finally,according to the above analysis,this paper puts forward corresponding suggestions from the perspectives of small and medium investors,government regulators and listed companies.