| Large stock dividends is a dividend policy of listed companies in China.Listed companies distribute dividends to investors by sending shares or transferring capital reserve to increase capital stock.Although large stock dividends is only an adjustment between the internal equity accounts of listed companies,some studies have found that the stock prices of listed companies tend to rise rapidly after the release of large stock dividends plans.Investors misunderstand this phenomenon as the important dividend returns made by listed companies.For A long time,the apparent generosity and high market returns of high transfer have been highly sought after by investors in the capital market and become the hot spots of speculation in China’s a-share market.Private placement is an important refinancing method for listed companies in China and plays an important role in raising funds for listed companies.In recent years,a large number of listed companies choose to send forward the plan after the private placement,especially before and after the release of the private placement period.Therefore,participating in the private placement of external institutional investors can obtain the premium.But the question is why do public companies transfer the transfer premium to outside institutional investors? According to a small number of empirical studies,there are two possible explanations: one is that the transfer premium is used by the listed company as a bargaining chip to negotiate the price of additional issuance,and the commitment to transfer after additional issuance can reduce the discount of additional issuance.In other words,the stock dividends after private placement may be the result of price game between the listed company and external institutional investors.The other is pure interest transmission,which may the major shareholders or the management try to win over the external institutional investors through this interest transmission in exchange for the investors’ tolerance of their opportunistic behaviors(Barclay et al.,2007).So under the private placement of large stock dividends to the end is the transmission tools of benefit or the price game with institutional investors by listed companies? It is necessary for us to the purchase of motive of the listed companies’ large stock dividends under the private placement.therefore,based on Jinsheng’s large stock dividends after the 2014 private placement,we try to analyze the large stock dividends behavior and the private placement behavior and the relationship between them in two angles about game over prices and profits transmission in order to find the real motivation of Jinsheng.In order to explore the real motivation of the large stock dividends behavior under the intelligent private placement,this paper first summarizes and summarizes the literature research on private placement and large stock dividends,and clearly defines the concept of private placement and large stock dividends.At the same time,using signal transmission theory,catering theory,price illusion theory,etc.as the theoretical basis of this paper,wo analyze the market reaction of large stock dividends and,price game motivation and interest transfer motivation.Secondly,it discusses the profit distribution of Jinsheng’s industry,and then introduces the dividend distribution of Jinsheng Company over the years.At the same time,it uses the event research method to analyze the market reaction of China’s capital market and the market reaction of different dividend policies and the market response of different situations of large stock dividends.Next,the Jinsheng’s private placement is introduced in detail,and the market reaction of large stock dividends is analyzed.Finally,the motivation of large stock dividends behavior under the intelligent private placement is analyzed based on the two aspects of price game and interest transmission.This paper finds that:(1)The large stock dividends behavior of listed companies has a relatively short-term market reaction,which creates suitable conditions for the private placement investors to reduce their holdings after lifting the ban.(2)The real motive of high-transfer behavior under the private placement of listed companies is not only the price game between listed companies and institutional investors,but also the transfer of interests between big shareholders and management and institutional investors.We suggest that(1)the supervision department should strengthens the supervision of listed companies;(2)we establish and improve the policies and legal mechanisms for implementing large stock dividends behavior;(3)wo should improve the governance level of listed companies;(4)it should strengthen the promotion and the education of small and medium-sized investors andestablish the correct investment philosophy. |
