Effects And Consequences Of Policy Changes On High Ratio Stock Dividend To Stock Price Of VRV

After financial crisis,as a dividend distribution policy which only changes the internal structure of shareholders' equity but does not have any substantial impact on the company's performance and development,high ratio stock dividend and stock splits still highly sought after by managers of listed companies and small and medium investors in the market.The excessive development and abuse of high ratio stock dividend and stock splits strategies even disturbed the market order and gave rise to phenomenon of hype.In response to this situation,the regulator showed great concern in 2017 and issued guidelines in 2018,listed companies must meet the relevant requirements to be qualified to take the stock dividend scheme.These policies have a profound influence on the stock price and market value of the listed companies which use high ratio stock dividend and stock splits as their dividend distribution policy.Since 2012,Beijing VRV Software Corporation has implemented four high-dividend distribution schemes intensively,completed the rapid expansion of equity in a short time,and the company's market value management has been extremely successful.This paper conducts a case study on the fourth high-dividend distribution scheme that is most relevant to the policy change,analyzes the specific process of the combination of high ratio stock dividend and stock splits and other methods in today's market as a kind of financial hype mode,and explains the irrationality of abuse of high ratio stock dividend and stock splits from the perspective of company value assessment and high-dividend ability.Combined with the industry characteristics in estimating the actual value of the enterprise,on the basis of the traditional discount method of cash flow,the real option value formed by potential earnings is added to calculate the total value of the enterprise.When analyzing the high-dividend ability of an enterprise,it measures whether the company meets the characteristics of ‘small capital stock,high stock price,high accumulation and high growth' from four aspects: capital stock,stock price,capitalreserve and undistributed profit and operating income growth.Finally,the analysis of the stock price fluctuation of VRV before and after the policy change compared to the market and industry confirmed that the abnormal part results from the effectiveness of regulatory policies on restraining the excessive price of stocks and artificially high market value.In addition,this paper gives a view combined with the conclusion of macro data research,suggests that listed companies should focus on long-term development,pay attention to the improvement of basic level,and take solid profitability and growth ability as the basis to win the favor of investors.