Research On The Motivation And Market Effect Of Y Company's Stock Split

Stock split refers to a high proportion of shares sent,the dividend distribution of rights.Its essence is the internal change of owner equity course namely undistributed profit or capital reserve convert into capital stock.The total book value of owners' equity,the shareholding ratio of shareholders and the book value of shares will not change,and there will be no actual impact on shareholders' equity.But Stock split theme stock has been the majority of investors hot pursuit,every time launched Stock split program stock prices can rise significantly.Y company's major shareholders are taking advantage of this opportunity to cash reduction.The case analysis of this dissertation has four parts.First,this dissertation introduces the existing research theories and research status of Stock split,and defines the concept of Stock split.Second,the dissertation introduces the case of Stock split of Y company.This dissertation first introduces the basic situation of the software industry in which Y company is located,the development history of the company,the main business status of the company and the shareholding situation of major shareholders.Then the condition of high transfer of Y company is analyzed.Finally,the dissertation introduces the Stock split event of Y company.Thirdly,the dissertation analyzes the motivation of the case of Stock split of Y company.The dissertation finds that Y company has a small capital stock.Stock split can expand the equity to prevent hostile takeover,and facilitate the financing of the company.Since the stock price of Y company is relatively high,improving stock liquidity is also one of the purposes of Stock split.And the management launched the Stock split is to reduce personal income tax,power major shareholders reduction.Fourth,the market effect of the Stock split event is studied.The dissertation first studies the investor's reaction after the Stock split plan is announced.Then the dissertation selects the announcement date of Stock splitas the key time point to study the event effect.The calculation results show that the stock price of Y company soared rapidly on the day of the announcement of the Stock split,and theexcess rate of return increased significantly.The market responded enthusiastically.Y company's major shareholders to smooth cash reduction.Finally,the dissertation analyzes the market effect after the implementation of Stock split.Discover Stock split after share price performance is smooth.Fifth,Y Company uses some means to achieve the reduced stock,and then use the Stock split distribution plan to create opportunities for large shareholders to create opportunities,indicating the investor's awareness in the process,the company's internal control There are certain loopholes in the system and the supervision and management of the China Securities Regulatory Commission.Therefore,in order to improve the market's behavior of transferring shares,this dissertation puts forward suggestions from three perspectives: investors,company management and government regulators.From the perspective of investors,the company judges the company's value and selects stocks.From the perspective of corporate governance,it proposes a profit distribution plan that matches the performance of the company.From the perspective of the regulatory layer,it discloses the disclosure system of the shareholders' reduction.give suggestions.