Research On Market Reaction Of "High Transfer" In LeTV

With the rapidly development of the capital market in our country,the dividend policy of public company has been paid more and more attention,and the dividend of the "high transfer" stocks in the stock market has attracted the attention of the majority of investors.Through observing the announcements of listed companies over the years,it is not hard to find that "high transfer" has attracted the attention of a large number of investors as well as the preference of the company's management.But when we get to the bottom of this,the essence of "high transfer" is simply to use capital reserves and surplus reserves to increase equity,which will not increase the assets of enterprises and will not improve the value of enterprises.Based on the situation,this paper used normative study method and the research method of case study method to study LeTV to implement "high transfer" of the specific conditions of the dividend policy,at the same time,the paper analyzes the stock price effects,liquidity effects and financial effects of stock dividend and stock split of listed companies based on the signaling theory,in-depth analysis of the implementation of the "high transfer" after the market reaction and the economic consequences.Finally,through the previous analysis,the research conclusions are drawn and policy suggestions are proposed.This paper analyzes the response of LeTV capital market from the aspects of stock price effect,liquidity effect and financial effect.Through analysis,we found that LeTV had a significant stock price effect after the "high transfer" announcement,and LeTV's stock price presented positive excess earnings.After the "high transfer",the stock liquidity of LeTV increased significantly.The larger the delivery ratio,the higher the book market value,the more obvious the liquidity and the obvious liquidity effect.LeTV "high transfer" did not increase the company's owners' equity,but the company equity scale,so diluted the miniaturization: the financial indicators,the earnings per share dropped,LeTV "high transfer" financial effect.Research at the same time,we found that the music networks is carried out in conditions do not conform to the "high transfer",under the condition of using stock dividend policy implementation of capital operation,but also hidden behind the big shareholders using the "high transfer" stock dividend policy greatly reduce its stock,cash,damage the interests of small and medium-sized investors,disrupt the capital market.Based on this,the papersuggests:(1)The Gem company should reasonably apply the dividend policy of "high transfer" stock dividend.(2)Investors should improve their investment concept to objectively evaluate the "high transfer" stock dividend policy.(3)Regulators need to strengthen market regulation of stock dividend policy avoid power abuse of the "high transfer" stock dividend policy.