A Case Study On The Benefit Transfer Behind The "High Transfer" Of Beixinyuan Under The Control Of Insiders

In recent years,listed companies are more and more keen to adopt the policy of high stock dividends",which can reintegrate the internal rights and interests of the enterprise and expand the scale of equity of the enterprise.A large scale of equity means a large registered capital,which means the strength of the enterprise.But recently,high stock dividends policy has slowly lost its true significance.The insiders of the company use this policy to raise the share price and take the opportunity to reduce their shares.They regard high stock dividends policy as a tool for interest transmission,infringes the interests of minority shareholders.Information and software service industry has a high frequency of high stock dividends policy in listed companies.This paper uses case study method and combines signalling Theory,liquidity theory and catering theory to use Beixinyuan as a case company.Beixinyuan is a typical company,because it has experienced many times of high stock dividends policy and insider reduction.This paper studies its real intention of high stock dividends policy under the control of insiders,it first analyzes and finds out several aspects that do not match with high transfer of Beixinyuan,namely,the ability to send shares,the scale of share capital,the level of share price and the profitability.It is speculated that high transfer of Beixinyuan may be for the purpose of profit transfer.Then,the paper discusses the way that Beixinyuan insiders use high-speed transmission to realize benefit transmission.Then,based on Beixinyuan's own situation and the institutional environment of China's securities market,this paper analyzes the causes of the transfer of high delivery to help insiders achieve the purpose of interest transmission,and finally analyzes the serious impact of this event.Through the analysis,it is concluded that beixinyuan's implementation of "high transfer" under the control of insiders is not to improve the comprehensive strength of the company,but to transfer the interests of small and medium-sized shareholders.Beixinyuan's "high delivery and transfer" is typical.This case shows the major problems that may exist in the high delivery and transfer of listed companies.The intervention of the government and the supervision of the Department have become the due intention.Investors also need to make rational judgment and keep a clear mind.Do not fall into the trap set by the insiders of the company in order to pursue profits.