High-split,Financial Performance And Reduction Of Large Shareholders

Dividend policy is one of the three major financial decisions of listed companies.The dividend 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.However,the dividend distribution policy if featured with paying more attention to stock dividend and stock split compared to cash dividend,also,the proportion of stock to equity is getting higher and higher.Actually,the high split is viewed as an anomaly.In fact,high split is only a conversion of accounting subjects,and its nature does not increase shareholders' equity,also it isn't improve the quality of the fundamentals of listed companies.Nevertheless,China's investors are very interested in buying high split shares.The concept of High split has become a hot spot when annual report is released.It is worth noting that,in recent years,some companies have also launched high split allocation scheme,even that companies has low profits or losses.At the same time,along with the high split is the major shareholder largely reduce their.In China's capital market,there is many cases that once the "high split" is announced,the major shareholder will immediately reduce their holdings.The "high split" that isn't consistent with the performance and the illegally reducing holdings are financial chaos,both of them are the objects that need to be monitored.This paper takes the reduction of large shareholders from 2010 to 2015 as the research sample to study the relationships among the tendency of high turnaround,the financial performance and the scale of holdings of large shareholders.Compared to better financial performance of enterprises,poor performance of the large shareholders of the proportion of holdings are higher.Further researchers found that the relationship between the high turnaround tendency and the reduction of large shareholders is affected by the financial performance.With the improvement of performance,and to the enterprise,the proportion of major shareholders reducing the change in high-split enterprises is significantly different with the non high split enterprises.Here are some possible innovations and main contributions of this paper.First of all,listed companies should develop a reasonable dividend policy that is according to their own financial performance.Secondly,investors should also establish long-term investment ideas,and abandon the habit of blinding investment;at the same time,regulators should also standardize the dividends plan of listed companies.Regulatory authorities should optimize the accounting treatment of "high split" as soon as possible,furthermore,as soon as possible to make the equity structure more and more reasonable,Last but not least,regulators should also regulate refinancing behavior.Here are some possible innovations and main contributions of this paper.To a certain extent,this paper enriches the research results of the reduction of large shareholders and the issue of high split.From the perspective of the large shareholders' reduction,it is proved that the "high split" is a tool for the reduction of large shareholders' arbitrage.Through revealing the essence of this phenomenon,it has a certain warning role for ordinary investors,and provides some references for the regulators.