A Study On "High Send And Transfer" Dividend Policy Of Listed Companies

Starting from the completion of the reform of the shareholder structure,a number of non-tradable shares were banned by steps on the stock market.The rapid expansion of circulating stocks in a certain period of time began to occur frequently.Concomitantly,the listed company is keen to choose a high proportion of dividend and shares split as the so-called profit distribution policy which we called the "high send and transfer" policy.The concept has also become the target for many small and medium-sized investors.The second is that in the period of the announcement of the "high send and transfer" policy of the listed companies,more and more insiders sell their shares.The author believes that these two phenomena are not isolated but have potential connections.Today,the implement of the"high send and transfer" by listed companies is increasingly popular in the market.Hence,which is of theoretical and practical significance for both regulators and small investors,to clarify that there is a logic between the enthusiasm of the listed company towards the "high send and transfer" policy and the behavior of selling shares by insiders.Through the combination of theory and reality,normative analysis and empirical test,this paper studies the above problems.In the first and second chapters of the text,we discuss and study the theoretical basis of the article and the current situation of the high transfer and the insider reduction and put forward the core problem of this article:Is the insider reduction that leads to high transfer,or the opposite.From the third chapter,the article enters the part of the empirical research.The third and fourth chapter focuses on verifying the phenomenon of internal revenue reduction and holding excess profits before and after the high transfer rate,as well as the comparative analysis and implementation of the active performance announcement and the actual long-term performance of the high transfer company,and finds some contradictions.In the fifth chapter,the Probit model is built in this paper.Through screening experimental samples and using instrumental variables,we can find out the logic between the "high send and transfer" policy and the insider's reduction behavior from the perspective of empirical analysis,and thus solve the interrelationship between the two factors.Finally,this paper will make brief conclusions and policy suggestions.The main conclusions of this article are as follows:First,from the perspective of short-term market returns,there is a period of abnormal market reaction in the period of the implementation of the policy of high send and transfer in the listed companies.Second,from the perspective of the long-term results,the high send and transfer policy carried out by the listed companies does not convey the good performance signal of-the enterprise's future.On the contrary,in the long run,the perforamance of enterprises will decrease,especially with the high degree of insider's reduction.In this case,enterprises prefer to disclose the optimistic performance announcement actively during the period.Third,it is an important motive for the listed company to carry out the high transfer policy to facilitate the insiders to seize more profits by selling their shares,and the insider's reduction plan has a greater impact on the dividend policy of listed companies.Therefore,this paper argues that the implementation of high transfer policy can provide a favorable opportunity for insiders to sell shares while insiders can also impact the formulation of dividend policy of listed companies.At a certain level,the high transfer rate will be opportunistic behavior when the insiders are motivated by interest grasping motives.