A Case Study Of "High Ratio Stock Dividends" Of Saixiang

Since the end of 2014,the “High Ratio Stock Dividends” has appeared in the capital market of our country.In 2015,the number of “High Ratio Stock Dividends” companies has reached the peak in recent years.But in this “High Ratio Stock Dividends” event,large shareholders and executives frequently sell their shares to gain a large amount of income.In view of this,people are curious about the decision to implement the real motivation of “High Ratio Stock Dividends” to the listed companies.Is it a dividend scheme that tells the outside investor that the company's market value is undervalued,or the use of market and irrational investors' preference for “High Ratio Stock Dividends” stocks to help large shareholders to sell stocks and gain profits?After reviewing the relevant literature and theories of “High Ratio Stock Dividends”,this selected the end of 2014,Saixiang as the object of case studies.First,a brief discussion is made on the background,process and result of the event of “High Ratio Stock Dividends”of Saixiang and found that both the media and regulatory authorities are suspicious of their motive of “High Ratio Stock Dividends”.Then,through the analysis of the status quo of “High Ratio Stock Dividends” of listed companies in the past years and the status quo of “High Ratio Stock Dividends” in the same industry of the same trade,we find that not only the number of companies that send dividend-paying dividend policy is more and more,but also the proportion of delivery and transfer increases year by year.Although Saixiang claims that “High Ratio Stock Dividends” is the management's optimistic about the company's development prospects,but in the macro and the company's own perspective on the Saixiang transfer capabilities can be found,Saixiang's “High Ratio Stock Dividends” is the lack of performance support.The “High Ratio Stock Dividends” behavior is not to tell the outside world,Saixiang with high growth and high value.Using the event study method to verify the market reaction for Saixiang “High Ratio Stock Dividends”,in the short term,excess return rate rose sharply,the market reacted strongly suggests that investors are price illusion.Subsequently,the behavior of stockholders and executives' stock reduction also reveals that large shareholders make use of information superiority to make use of the “high delivery and transfer” behavior to damage the interests of minority shareholders.The case highlights the problems of all parties in the capital trading market in China.Therefore,this paper thinks that in order to reduce between large and small shareholders' expropriation behavior,listed companies should be based on its own business and development situation,develop a reasonable dividend policy to match;Secondly,investors should also fully understand the details before investing,enrich their professional knowledge,do not blindly follow the trend of investment;Finally,the relevant regulatory authorities should also strengthen the thinking and understanding of the phenomenon,effectively enhance the supervision.