Research On The Motivation And Economic Consequences Of Enterprises’ High Stock Dividends Under The Background Of Equity Pledge

With the continuous development of our country’s capital market,there are more and more financing channels for enterprises.In recent years,many companies are willing to choose equity pledge as a financing method due to its low threshold,outstanding efficiency and simple procedures.The high stock dividends,that is,the high percentage transfer of stocks,has been a hot topic in the stock market in recent years and has been sought after by small and medium investors.Since the pledge of major shareholders’ equity will convey to the external market the negative news that the shareholders themselves or the company are in financial difficulties,and a large number of studies have shown that high stock dividends have an obvious positive effect on the company market value,the equity pledge may become the motivation for the company’s high-sending.Studying the motivations and economic consequences of companies’ high stock dividends under the background of equity pledges will not only help investors correctly understand the company’s high stock dividends behavior and make rational investments,but also provide regulators with some ideas for formulating regulatory plans to further regulate the high stock dividends behavior.Starting with the background information of equity pledge,this article chooses Markorfurniture as the case company,and studies the motivation and economic consequences of high stock dividends in companies with a high percentage of equity pledges.This article first analyzes the situation and characteristics of the major shareholder’s equity pledge of Markorfurniture in recent years,and clarifies the trend of funds obtained by the major shareholder’s equity pledge.Based on the basic operating conditions and capital use of the case company,this article continues to analyze the motivation of the case company’s high stock dividends policy.Next,this article uses the event research method and the financial analysis method to analyze the short-term and long-term economic consequences of the case company’s stock dividends policy.Finally,based on the previous analysis,the author puts forward recommendations for research from the perspective of regulators and investors.This paper finds that under the background of high equity pledge ratio of major shareholders,shareholders are motivated to exercise their decision-making power to prompt the company to carry out a high stock dividends distribution plan.In this way,they can avoid the risk of control transfer caused by the stock price falling to the margin line.When major shareholders have frequent equity pledges,the market has an obvious positive reaction in the short-term when the high stock dividends plan is announced,but there is no positive reaction during the implementation of the high stock dividends plan.The announcement of the high stock dividends plan has a significant buffer effect on the negative market reaction of equity pledges.After the high stock dividends,the company’s financial indicators will improve in the short term,but in the long-term,the high-end transfer without performance support cannot bring a positive impact to the company.