Research On The "High Stock Dividends And Stock Splits" Dividend Policy Of High-growth Companies

The main driving force of the capital market is the development of listed companies.Listed companies should share their own development dividends and shoulder the responsibility of giving back to investors.From the company’s standpoint,the dividend policy is closely related to the company’s growth and development,and related to the company’s strategic prospects.For shareholders and potential investors in listed companies,the dividend policy is closely related to their short-term and long-term interests.For the capital market,dividend policies also have an impact on market order and investment philosophy.On the one hand,the growth opportunity can effectively measure the expansion speed of the listed companies,and is also a concentrated reflection of its comprehensive capabilities.High-growth companies is eye-catching in the expansion of their share capital,corporate debt repayment,operations,profitability,and development capabilities.On the other hand,the implementation of a true and reasonable “High stock dividends and stock splits” stock dividend policy not only meets the demands of investors’ return on earnings,but also helps push the company develop in a healthy and steady way and promotes an increase in the corporate value.Under the goal of realizing the maximization of shareholder wealth,the management of the listed company seeks to achieve a balance between profit distribution and profit retention through the implementation of the “High stock dividends and stock splits” dividend policy to further expand shareholder wealth.It is worth noting that a continuous and stable “High stock dividends and stock splits” dividend policy is an effective mean to expand the company’s influence and enhance the company’s image,providing good opportunities and development momentum for the company’s sustainable development.Since the “High stock dividends and stock splits” dividend policy is closely related to the growth of the company itself,what are the preconditions for a company that reasonably implements “High stock dividends and stock splits”? Is the growth opportunity of the company a necessary condition for effective implementation of “High stock dividends and stock splits”? Is the intrinsicvalue of the company reflected reasonably and reasonably in the capital market ? What is the intention and the economic consequences of the implementation of "High stock dividends and stock splits" ? These issues are worth our in-depth analysis.This thesis focus on "High stock dividends and stock splits" that is very active in the current securities market.First of all,it analyzes the necessary conditions for the the case company New Website to implement the "High stock dividends and stock splits",and studies whether the company possess strong growth opportunity.The thesis mainly discusses the case company’s growth and development speed,quality and potential.Secondly,to further measure the value of Beijing Sinnet Technology Co.,Ltd,in the process of entity measurement,the cash flow discount model is used to measure the real asset value of Beijing Sinnet Technology Co.,Ltd and a real option model is superimposed on this basis to measure the value of some investment projects.In addition,it is supplemented by the relative value method to verify the company’s corporate value.The estimated corporate value is a quantitative analysis of the company’s growth opportunity.Its main purpose is to study the rationality and authenticity of the company’s four-time “High stock dividends and stock splits” dividend policy.Thirdly,combining the specific circumstances of the case companies,the thesis analyze the economic consequences of “High stock dividends and stock splits” and clarify the positive effect of a reasonable “High stock dividends and stock splits” dividend policy implemented on the basis of undervaluation.In response to the possible unreasonable "High stock dividends and stock splits" situation,the thesis proposes policy recommendations from three main bodies,including the company itself,investors,and regulatory agencies,in the hope that the "High stock dividends and stock splits" implemented by listed companies can rely on the actual development of the company and its policy formulation,and the jumping off point of its policy-making can develop towards a reasonable,effective,and real direction.Based on the above arguments,this paper concludes that the key and necessary condition for effective “High stock dividends and stock splits” is that the company has a relatively high growth opportunity,its intrinsic value and market value are not significantly different,and the enterprise value is not overestimated.Real and reasonable use of the "High stock dividends and stock splits" capital operation method can promote the company’s comprehensive ability to some extent.