The Analysis Of Stock Dividend Changes And Financial Benefit Of Listed Companies

In China’s capital market, dividend distribution of listed companies present many forms,including cash dividends, stock dividends, also known as “bonus”, and reserve fund,referred to as “transfer shares”. Listed companies tend to choose one or two or even threehybrid forms of dividend distribution. For investors, stock dividend changes can not lead tochanges in total shareholders’ equity, more intuitive performance is to increase the number ofshares held by investors. For listed companies, after the delivery, the total share capital of thecompany as a whole will increase, but the company’s assets, liabilities, etc. will not bematerially affected. Since stock dividend changes cannot increase shareholders’ wealth, itshould not have a big reaction on the market. But in our country’s stock market, the stockdividend changes are not ignored, especially when focused on the disclosure of the annualreport each year, stock dividend changes, especially the “high transfer” stocks are oftensought after by investors and it could cause the shares of listed companies to send high limitduring a short time. Although the Commission issued a series of cash dividend policy, butstock dividend changes, especially high transfer phenomenon did not significantly reduce,what are the reasons? Why are listed companies keen to stock dividend changes? What is therelationship between the stock dividend changes and financial effects? Whether industrydifferences affect the financial effect or not?In view of the above problems, this paper firstly introduced the meaning inherent in stockdividend changes and financial effect from the theoretical and practical point of view. Thepaper is to make an empirical analysis based on the sample companies of2010, with themethods of two non-parametric test for paired samples, non-parametric test for independentsamples and regression analysis. Based on the study, the paper analyses the stock dividendchanges and financial benefit, the financial benefit of different industries and the impact onthe financial strength of the effect send transfer analysis of listed companies.Research results: the listed companies’ financial effect is not significant to the goodperformance after stock dividend changes, profitability, asset management capabilities, andthe ability to long-term develop, has a downward trend, only solvency is improved. Differentindustries turn out a different financial effect after the stock dividend changes. Manufacturing and the real estate has a similar financial effect after the stock dividend change, while ITindustry’s differs. The degree of stock dividend changes has a positive correlation withfinancial effects in the short term, however, but in the long run, the degree of stock dividendchange has no obvious relationship between the financial effects.