Research On Motivation Of "High Sending Turn"From Perspective Of Interest Driven

Dividend distribution is an important part of corporate finance, Scientific and rational distribution of dividends is conducive to the long-term development of the listing Corporation, but also to protect the interests of investors and increase the confidence of investors in the listing Corporation. Different from the cash dividends based dividend payment method in the United States and other western mature markets, “Despise cash bonus, highlight stock dividends and common reserves capitalizing” is a big feature of listed companies in China for a long time, but in the listed companies which implement stock dividends and common reserves capitalizing, high sending turn companies take a large proportion. “High sending turn” means implementing stock dividends and common reserves capitalizing with a high proportion, It does not bring about a change in the equity and profitability of the listed company, it is just the internal adjustment of the shareholders equity, that is to say, the “high sending turn” is not substantial good news. But “high sending turn” stocks will cause severe market reaction in March or April every year, investors scramble for the “high sending turn” stocks. Faced with investors’ high enthusiasm for the “high sending turn” stocks, the momentum listed companies implementing the “high sending turn” is to become more and more prosperous. Why the “high sending turn” stocks are so favored by listed companies in our country, does the implementation of the “high sending turn” in listed companies has a ulterior secret? In view of this problem, this paper analyzes and proves from two aspects: theory and demonstration.This paper takes the motivation of listed companies implementing the “high sending turn” as respect, based on understanding that considerations of previous scholars about why listed companies implement the “high sending turn” are not comprehensive, from the perspective of interest driven, this paper selected three specific aspects: the private placement, the reduction of major shareholders, and equity incentive. Then, this paper analyzes the behavior of “high sending turn” of listed companies and the nature of “high sending turn”, and analyze the characteristics and trends of China’s listed companies in recent years based on data.Subsequently, the article verified the existence of excess returns in the announcement date of "high sending turn" using the event analysis method and ordinary least squares regression, on this basis, this paper made theoretical analysis and assumption aimed at the motivation of "high sending turn" motivation from the perspective of interest driven.In the aspect of demonstration, this paper made regression analysis for panel data in recent eight years of “high sending turn” A-share listed companies in Shenzhen Stock Exchange using the Logit model, finally, we came to a conclusion that the possibility of the implementation of the "high sending turn" of the listed companies has a significant positive correlation with the private placement, the reduction of major shareholders and the equity incentive, so as to confirm that the implementation of “high sending turn” of listed companies exactly have a certain relationship with maintaining the interest of major shareholders, institutional investors, executives and the listed companies themselves.On the whole, the results of theoretical analysis and empirical tests show that, excess returns do exist in the “high sending turn” stocks, although some listed companies implement the “high sending turn” to pass the optimistic information and for their long-term development, there are also a number of listed companies who implement the “high sending turn” in order to cooperate with the major shareholders, the institutional investors and the executives to safeguard their own interests.