Study On The Motive And Market Effect Of High Turnover In China's Stock Market

In recent years,the stock dividend policy of listed companies has received much attention.High transfer is a new trend in China's stock market,and it has become increasingly fierce.The number of companies and the ratio of transfer have increased substantially.Why is the high transfer rate so sought after by listed companies and investors? What is the motivation for listed companies to choose high turnover? Does high transfer have a significant impact on stock prices? In this context,this article begins its research.This article selects companies in China's Shanghai and Shenzhen Stock Exchanges from 2012 to 2016 annual report "high delivery" as a research object,to study their sending rotary machines and market effects.This article attempts to use logistic regression model and event research method to study.The study finds that China's A-share listed companies are sending high-rotation machines mainly because of the following three aspects: First,they communicate the company's optimism to public investors through the implementation of “high delivery” to attract investors' attention;second,they implement “high delivery”.To expand the company's total share capital,to achieve capital expansion at the lowest cost;Third,to maintain the company's stock price at a reasonable price range by implementing "high delivery" to increase the liquidity of the company's stock,or to stimulate the "price illusion hypothesis" The stock price caters to investors' needs.In order to determine the possibility of the listed company being motivated by the “optimal price range theory” or the possibility of the “price illusion hypothesis” motivation,this paper examines the market effect of high transfer pricing.Through the research on the market effect of high transfer,it is concluded that market investors react fiercely to the high transfer policy,and the share price has risen significantly after the “high transfer” policy announcement,and the phenomenon of “price illusion” has indeed existed in China's securities.In the market,the motivation of listed companies for “high transfer” is more likely to be due to the “price illusion hypothesis”;besides,the management of listed companies is insider information insiders,and through the “high transfer” market effect study found that Serious "insider trading" phenomenon,so there is a possibility that listed companies use "high delivery" to stimulate stock prices to cater to investors and even illegally profit from insider trading.In addition,it is also found that there is a difference between the inter-block and inter-annual market effects of high turnover.The research of this paper has certain theoretical significance and practical significance.On one hand,it enriches the research of high transfer.On the other hand,on the basis of the research conclusions,some suggestions are provided for regulators,listed companies and investors for reference.