A Study On "High Stock Dividends" And Selling Shares By Major Shareholders And Its Influence

In recent years,during the annual distribution of listed companies in China,more and more companies adopting “high stock dividends” have analyzed the annual report information disclosed by listed companies,and we can find that the concept of “high stock dividends” is Very hot in the stock market.The market is often periodically hyped.Not only did the company's management have a special preference for the“high stock dividends” program,but the “high stock dividends” concept stock was also highly sought after by small and medium investors.In the stock market,“high stock dividends” has been regarded as an overall concept to conduct speculation.Essentially,the so-called transfer of shares is only the transfer of capital reserves to share capital,and does not represent the excellent operating conditions and profitability of the company.There is no real effect on the actual income of investors.However,many individual investors are still rushing toward “high stock dividends”stocks.The ratio of “high stock dividends” is also a record high,which has caused the CSRC's attention.In the past few years,listed companies carried out “high stock dividends” mainly to convey good news and expand their share capital.Now,more and more companies are conducting insider trading or interest transfer in order to cooperate with major shareholders to reduce their shareholdings.The CSRC also has many Condemned at a time,the Exchange also frequently issued a letter of concern regarding the announcement of listed companies that intend to “high stock dividends”,and Chairman Liu Shiyu also repeatedly mentioned in his speech that listed companies should avoid “demonization”.Therefore,the “high stock dividends”phenomenon in the stock market deserves close attention and in-depth study.Since the beginning of 2014,Dragon Group has successively acquired a number of Internet marketing companies.The company's market value has soared,eventually breaking the 10 billion mark.On November 11 th,2016,Dragon Group announced the plan to reduce shares of major shareholders.Within a week,it issued another “high stock dividends” plan,announcing a 15 share increase for every 10 shares.Major shareholders reduced their shareholdings by more than 12 billion,And with the lifting of the restricted shares to lift the ban,which led to the Shenzhen Stock Exchange letter of concern.After the acquisition of a number of companies,Dragon Group's profits have risen sharply.The announcement of the “high stock dividends” plan has also won the attention of the market,allowing the stock price to rise in the short term,thus paving the way for major shareholders to reduce their holdings.This article takes the “high stock dividends” and major shareholder reduction and its impact on the capital market as the research object,to explore the existence of insider trading of listed companies on the GEM,and strive to provide some suggestions for investors and regulators.Firstly,the background and significance of this topic were explained,and then the domestic and foreign scholars were combed on the research results of high transfer and major shareholder reduction.Then introduced the relevant concepts and theoretical basis,and then analyzed the current status and motivation of high transfer in the A-share market,and then through the case study method to deeply analyze the “high stock dividends” and the selling shares by major shareholders of Dragon Group.It mainly introduces the transition and acquisition of Dragon Group,analyzes the stock price before the “high stock dividends” and the shareholding status of major shareholders,After that,it discusses the reasons for Sky Dragon Group's “high stock dividends” behavior,and then uses the incident research method to analyze the market reaction after the “high stock dividends” plan,and studies the abnormal return rate of stocks within 20 days before and after the release of the preplan;After sending the company's financial indicators,study the impact of the high transfer of the company,and finally based on the study concluded that the investors,the company listed on the GEM and the supervisory level to prevent large shareholders through the reduction of behavior infringement of the interests of small and medium shareholders Act,make some helpful suggestions.