Study On The Influential Factor And Effect Of The GEM Companies' "High Stock Dividend"

The Growth Enterprise Market was approved by the State Council and started in the Shenzhen Stock Exchange in October 2009.This event improved the structure of Chinese capital market.And GEM provided a new listing way for those companies which can't reach the listing requirements list on the Main Board.Although the establishment of GEM was late,after eight years of development,it has played a significant role in Chinese market economy.Although the companies listed on the GEM have short time of establishment and small scale,most of them were high-tech companies with great potential.These companies successfully listed on the Growth Enterprise Market,which laid a foundation to expand the scale and enhance core competitiveness in the future.Different from the Main Board market,GEM listed companies are very keen on the dividend policy.In recent years,there were a large number of GEM listed companies declare high stock dividend,and some companies even announced the transfer of 30 for every 10.This phenomenon has attracted great attention of the regulatory authorities,but also attracted the attention of market investors.Based on the above background,this thesis summarizes the current situations and reasons of GEM's high stock dividend.And select Company G as the research object to analyze its consecutive high stock dividend.This thesis compares Company G's datum of transferability,profitability and growth with the average level of the same industry from 2014 to 2016.And it found that Company G was in a dominant position during the three years in general,and it had a strong ability of high stock dividend.This article analyzes the different effects of high stock dividend on the announcement day and the ex-rights day,which are based on announcement effect,stock liquidity,company market value,future financing ability and potential risks.Through the study,it was found that high stock dividend could bring positive effects to Company G during the short time of the announcement day and the ex-rights day.At the same time,there is a reduction in holdings of major shareholders in Company G.This alert market investors that they should rationally treat high stock dividend,and the supervisory authorities should also strengthen supervision to prevent listed companies from manipulating their stock prices and disrupting market order.