Research On The Behavior Of " High-share Stock Dividend " Of GEM Companies From The Perspective Of Tunneling

In recent years,“high stock dividends” have occurred frequently in China’s capital markets.GEM listed companies are most active in implementing the “high stock dividend” policy.The China Growth Enterprise Market has been in existence for ten years since its opening in 2009.During the decade,the number of the GEM companies with high stock increased in size.“High stock dividends” can generally bring a lot of convenience to listed companies: First,it helps to expand the company’s registered capital and help the company to obtain more convenience in equity financing and bond financing.Second,as a speculative theme,it delivers excellent performance.The signal boosts the company’s stock price and increases the company’s market value.Third,it significantly reduces the company’s current share price,providing more room for future stock price.From an essential perspective,“high stock dividends” is a way of profit distribution in which the company’s management shares operating results with investors.Listed companies,investors and regulators should treat the “high stock dividend” behavior of GEM companies in a prudent and scientific manner.From the perspective of accounting theory,the “high stock dividend” has no substantial change to the company’s fundamentals,but it will adjust the amount of the company’s equity accounting subjects.From a realistic perspective,"high stock dividends" as a form of dividend distribution has become a tool for many listed companies to raise their stock prices and implement the transfer of interests in the real capital market.The time to disclose “high stock dividends” is known to the industry in advance,while insiders use the market effect of “high stock dividends” to take advantage of the opportunity to reduce their holdings and thus obtain excess returns.This “tunneling” behavior directly led to the chaos of the “high stock dividend” of the China GEM,which seriously hindered the healthy development of the GEM.This paper uses the literature reading method,case study method and event research method as the research method,combined with the existing literature results,with the appropriate academic theory as the support,describes the current status of China’s GEM "high stock dividend" and select the “high stock dividend” event of Easycom in 2016 for research.The case pa Rt analyzes the actual purpose of the “10 shares for every 10 shares” in 2016 by analyzing the dividend behavior of Easycom from 2014 to 2016.First of all,This paper analyzes the stock dividend,the ability of capital scale,the stock price level and the profit level,and finds that the policy of high stock dividends is unreasonable in the East.Secondly,the paper uses the event research method to explain the positive market effect brought by the “high transfer”.Finally,it analyzes a series of market behaviors of the company after the event,indicating that East hides the Tunneling behavior.I hope that the relevant conclusions of this paper can help the GEM listed companies to better implement the dividend policy,protect the vital interests of small and medium investors,and provide more detailed suggestions to the regulatory authorities,and provide reference for the upcoming science and technology innovation board supervision.The contributions of this paper are as follows: First,in the previous relevant literature,most scholars use empirical research methods.This paper uses the case study method to study the "high stock dividends" vision of the GEM market,and provides some new ideas for follow-up researchers.Second,the case company selected in this paper is to use the employee stock ownership plan and “high stock dividends” as the combination of boxing for the tunneling.This method is rare and can provide a new perspective for the study of the tunneling.Third,the study “high stock dividends” can help small and medium-sized investors to invest rationally and protect their economic interests,and remind innovative and entrepreneurial enterprises how to correctly implement dividend policy,and at the same time it can improve the market supervision system of “high delivery”.Fourth,the service targets of science and technology innovation board and GEM are innovative and entrepreneurial enterprises.Therefore,studying the “high stock dividends” listed companies on the GEM is conducive to providing reference for the future supervision of the science and technology innovation board.Due to the limitations of case analysis,this paper mainly analyzes the behavior of a company’s “high stock dividends”,and the relevant conclusions and recommendations are not universal.In addition,the channel of the tunneling is concealed and comprehensive.In a cautious attitude,this paper does not conduct an in-depth analysis from the perspective of whether the OTC institutional investors participate in the tunneling.