Haron Solar Technology Co.Ltd's High Ratio Stock Dividend And Stock Splits-Underestimate The Value Or Help The Reduction

Dividend policy is one of the three major financial decisions of listed companies.stock dividend and stock split is the important information which conveyed by listed companies,it is often seen as the direct reflection of listed companies' operating performance and true value.But the dividend distribution policy is featured with paying more attention to stock dividend and stock split compared to cash dividend.Especially the high ratio stock dividend and stock splits is viewed as an anomaly.Moreover,the issue of the reduction of major shareholders appears with high ratio stock dividend and stock splits.In the case of capital market information asymmetry,some large shareholders and executives in the sensitive period of announcement trading in the high price in order to cash,in low hunters and profited.But this also caused the loss of the interests of other small and medium-sized shareholders,which leads to the serious injustice of the entire capital market,affected Chinese capital market stability and the construction of market economy.What's the motivation behind listed company's decision to distribute high ratio stock dividend and stock splits.In order to convey the news that the company's value is underestimated,or take the advantage of the pursuit of high ratio stock dividend and stock splits to help the reduction of major shareholders.According to this phenomenon,this article first from our country present hot the highratio stock dividend and stock splits,analysis the development trend of the highratio stock dividend and stock splits,and put forward a reasonable explanation of its motives.Secondly,this paper is aimed at the reduction of the major shareholder of A stock market after the massive lifting of ban.Select the case of year 2015's most high ratio of the high ratio stock dividend and stock splits-HARON SOLAR TECHNOLOGY CO.LTD to a detailed analysis,First,estimate the value of the company,in order to exclude the possibility that the company carry out the high ratio stock dividend and stock splits means its value is underestimate.Then analyze the ability of "the high ratio stock dividend and stock splits",the reaction of this dividend policy,the large shareholders take the advantage of this dividend policy and so on.and come to a conclusion:Nowadays,the high ratio stock dividend and stock splits without capital can be found everywhere,controlling shareholders of listed companies use their own advantages and the information of the high ratio stock dividend and stock splits to bid up the price,reduce stock for cash holdings.They abuse the benefit of small and medium-sized shareholders in order to gain the excess earnings.At last,according to the current situation of our country' listed companies' the high ratio stock dividend and stock splits and the phenomenon of lager shareholders erode small and medium shareholders'interests,to avoid the interests violations between large shareholders and medium-sized shareholders,the companies should carry out the reasonable dividend policy,according to itself;secondly,the medium-sized shareholders should strengthen the consciousness of investment.At the same time,the oversight from the regulatory and the improvement of the system of information disclosure also play the crucial role.