Research On The Cause And Effects Of High Stock Dividends Of Listed Companies In Gem

As a kind of dividend policy,the high stock dividends can theoretically optimize the share capital structure and convey the signal of high growth performance to the outside world,which helps to maintain the positive image of the company.Once released,it is often wildly welcomed by investors.But in recent years,the market chaos is frequent,especially in the GEM market,no matter how the business performance of the enterprise itself,whether it has high stock dividends conditions,every year to the middle or the end of the year,began to hype high stock dividends heat.So much attention has been paid to the magic of the high stock dividend policy.Especially in the last two years,under the circumstance of stricter policy supervision,some GEM listed companies that do not have the conditions for implementation begin to deliberately avoid market supervision and plan the behavior of "scratching the edge high stock dividends" that does not match their operating conditions to match the real stock dividends purpose of enterprises.Therefore,the observation and study of high stock dividends should be continued.This paper mainly adopts the case study method.First of all,starting from the social status quo of our country,on the premise of having a certain theoretical basis,combining with the characteristics of China’s GEM market,comparing the Main board and Small and medium-sized board high stock dividends trend,we get the conclusion that the wind of China’s GEM high stock dividends is prevalent and the number of "edge high stock dividends" companies has increased significantly in the past two years;Secondly,the Qiangli Xincai of the typical case company is selected to comb out the whole process of its high stock dividend policy which has been disclosed successively between 2016 and 2018.The focus is on the plan of "cutting the edge and high stock dividend" launched at the end of 2018 with the reduction of major shareholders.Finally,it analyzes the implementation environment,implementation conditions,implementation motivation and implementation effect of the Qiangli Xincai high stock dividend policy of the company.The results show that:(1)the high stock dividend policy of Qiangli Xincai does not have the conditions to implement.The ability to stock dividend is weak and does not meet the regulatory requirements,and the performance change is difficult to match the high stock dividend ratio.(2)High stock dividend policy needs high growth performance as support.If the lack of performance support will affect the financial performance,and even lead to the decline of the intrinsic value of the enterprise.(3)The listed companies will implement the high stock dividend policy for the reasons of expanding the scale of equity,paving the way for refinancing,reducing the share price,improving the stock liquidity and transmitting good business information to attract investors.(4)Significant excess return and cumulative excess return will form near the announcement date of the high stock dividend plan,while abnormal return is not obvious near the ex-rights and ex-interest date,and it is difficult to form the filling effect due to the lack of performance support.(5)High stock dividend policy can be used as a powerful tool for large shareholders to reduce their holdings and cash out.When the equity is highly concentrated,it is difficult for small and medium investors to restrict the decisions of major shareholders.Large shareholders will take advantage of the high stock dividend to cater to investors,resulting in a short rise in the share price,taking the opportunity to reduce their holdings for profit transmission.Based on this,from the perspective of medium and small investors,GEM listed companies and supervision,the paper puts forward some suggestions on setting up healthy investment concept,choosing dividend policy suitable for the development expectation of the company and changing supervision perspective.