Research On The Motivation And Economic Consequences Of The "High Delivery" Dividend Policy

Dividend policy has always been one of the most important financial decisions of listed companies.Reasonable dividend distribution can not only affect the investment and financing decisions of enterprises,but also help to encourage investors to continue to invest and promote the stable development of the company.In recent years,more and more listed companies tend to use the way of stock dividends to pay dividends.As the proportion of stock dividends is increasing,the phenomenon of "High stock dividends and stock splits" appears.According to the China’s securities market,after the company’s " High stock dividends and stock splits " program,the stock price will experience a temporary decline,affected by the stock’s ex-dividend and ex-option.So,the dilemma of weak stock liquidity brought by high stock price will be alleviated.At the same time,the release of " High stock dividends and stock splits" scheme can also transmit positive signals of good business performance to the outside,which can enhance investors’ confidence in the enterprise.Therefore," High stock dividends and stock splits " scheme has become the priority choice of many listed companies when they are deciding the dividend distribution policies.However,in this " High stock dividends and stock splits " boom,many companies are using it to inflate the stock price,so that they can sell a large number of shares at a high price for personal gain.This behavior has brought large economic losses to many small and medium investors,and turned the profit distribution scheme of " High stock dividends and stock splits ",which should have positive significance,into a tool for controlling shareholders to infringe the interests of minority shareholders.As a result,people are gradually ignoring the impact of dividend policy itself on enterprises.Therefore,it is of great practical significance to study and analyze the " High stock dividends and stock splits " dividend policy of listed companies.This paper mainly uses the case study method,combined with Hunan Jiudian Pharmaceutical Co.,LTD.’s " High stock dividends and stock splits " behavior in 2018,to discuss and analyze the " High stock dividends and stock splits " dividend policy of listed companies.This article is composed of five chapters.The first chapter introduces the research background and significance,literature review,research content and methods,as well as the existing innovations and shortcomings of this paper.The second chapter defines the key words of dividend policy and " High stock dividends and stock splits ",and then introduces the theories related to " High stock dividends and stock splits ".The third chapter briefly introduces the company profile and the "High stock dividends and stock splits " process of Hunan Jiudian Pharmaceutical Co.,LTD.The fourth chapter,as the focus of the whole paper,makes a comprehensive analysis of Hunan Jiudian Pharmaceutical Co.,LTD ’s " High stock dividends and stock splits " capability,behavior motivation and economic consequences.The fifth chapter draws the research conclusion from the previous chapter,and puts forward relevant suggestions from the three levels of enterprises themselves,market investors and regulatory agencies.Research Conclusion :(1)" High stock dividends and stock splits " can bring short-term excess earnings;(2)" High stock dividends and stock splits " does not improve long-term corporate performance.The research suggestions are as follows :(1)Enterprises themselves should rationally use the dividend policy of " High stock dividends and stock splits ";(2)Market investors should objectively evaluate the investment value of " High stock dividends and stock splits ";(3)Regulators agencies need to improve the " High stock dividends and stock splits " supervision mechanism.