Study On The "High Stock Dividends And Stock Splits" Based On Growth

At present,“High stock dividends and stock splits” policy has become a hot spot for dividend distribution policy in the Chinese capital market.The distribution of profits in Chinese capital market is generally characterized by the behavior of “High stock dividends and low cash dividens”.On the one hand,stock dividends can meet the needs of investors,On the other hand,retained liquidity funds for the company would reduce the company's working capital shortage costs.Considering the entire company's strategy,the “High stock dividends and stock” dividend payments can further expand the size of the company's capital stock,reduce the stock price to promote the liquidity of the stock,and help companies to raise more funds in the second issuance.Although the Growth Enterprises Market Board started later than the Main Board Market and SME Board Market,it has made up for the lack of the main board and the small and medium-sized company and plays an important role.GEM companies generally have the characteristics of small-scale capital stocks but high profitability and growth.They hope to achieve rapid expansion of their share capital through “High stock dividends and stock splits”,so that the stock capital size can match the company's growth.Dividend policy has been favored by many GEM companies.Furthermore the highly-growing GEM companies can easily have the effect of “fill right” after the implementation of the Ex-Dividend,the stock price has risen sharply,the company's market value has increased,and effective value management has been achieved.From this point of view,the study of the " high stock dividends and stock splits " policy will be positive significant to the growth of the GEM.This article mainly uses the case analysis method.This article is composed of five parts.The first part and the second part mainly are the introduction and the theories,which defines the relevant theories such as “High stock dividends and stock splits” and “Growth”.The third part introduces EAST Co.,Ltd.("East")and the basic implementation of the dividend policy over the years.The fourth part studies and analyzes the case,by comparing with competitors in the same industry,we can explore its advantages and the positive economic consequences,which will conclude the motive of the dividend payments.The fifth part draws conclusions from the previous analysis and proposes policy recommendations.