In November 2018,the two major exchanges in Shanghai and Shenzhen officially issued the New Guidelines for high ratio stock dividends.In order to avoid supervision,some listed companies with bad purposes turned to the "Edge Ball" style high ratio stock dividends.The dividend policy is often followed by more hidden tunneling behavior,which is more likely to harm the interests of small and medium investors.Therefore,it is necessary to strengthen the protection of small and medium investors to study tunneling behavior under the "Edge Ball" style high ratio stock dividends.Zhengyuan Zhihui was the first listed company to disclose the "Edge Ball" style high ratio stock dividends plan when the new regulation was issued,which triggered this new anomaly and attracted the attention of Shenzhen Stock Exchange.Subsequently,it carried out hidden tunneling through multiple ways,taking it as a very representative case study object.Based on the current policy and market environment,this study aims to identify the correlation between the "Edge Ball" style high ratio stock dividends and tunneling behavior through the analysis of the case enterprise the "Edge Ball" style high ratio stock dividends and tunneling signs and behavior path,so as to enhance the awareness and vigilance of small and medium investors to the tunneling behavior under the "Edge Ball" style high ratio stock dividends.It also provides specific suggestions to strengthen the protection of small and medium investors under this behavior.In this study,the "Edge Ball" style high ratio stock dividends is defined,and combined with case enterprises,based on market timing theory,principal-agent theory,PCE theory,and other theories,the author adopts case analysis,literature analysis and statistical analysis methods to carry out an innovative research on the tunneling behavior behind the dividend policy from the perspective of investor protection.First of all,on the basis of sorting out important time points,this paper describes related events of Zhengyuan Zhihui’s "Edge Ball" style high ratio stock dividends.This part focuses on sorting out the events that point to the tunneling behavior after pre-disclosure.Secondly,this study excavates the tunneling signs under Zhengyuan Zhihui’s "Edge Ball" style high ratio stock dividends from three aspects: the mismatch between dividend policy choice and the actual transmission ability,the inconsistency between the response to the concern letter and the actual situation,and the deliberate avoidance of the regulation provisions of the new regulations.Based on the data of A-share listed companies in Shanghai and Shenzhen Stock markets that have announced dividend transfer announcements from 2018 to 2021,the Logit regression analysis is carried out,and it is proved that there is A significant positive correlation between the "Edge Ball" style high ratio stock dividends and the underlying tunneling behavior.On the basis of the above qualitative research,the paper makes an in-depth analysis of the path of Zhengyuan Zhihui’s tunneling,and points out that this behavior will lead to the decline of the company’s economic added value,the decline of the index per share and the sharp decline of the stock price,which will harm the interests of small and medium investors.Finally,the paper draws inspiration from three aspects of the "Edge Ball" style high ratio stock dividends itself,regulators and small and medium investors,and puts forward suggestions for small and medium investors.However,as there are few literatures related to this study and the amount of applied data is limited,the relevant content of this paper will still be improved after data enrichment and in-depth research. |