Study On The Tunneling Behavior Of The Major Shareholders Under The Large Stock Dividends Of Tianguang Zhongmao

Dividend distribution policies of listed companies in China generally have the phenomenon of paying more attention to stock dividend compared to cash dividend.Although the company's fundamentals and investors' interests have not changed during the process of large stock dividends,the nominal stock price has decreased after the large stock dividends,and investors mistakenly believe that the stock has a large upside,and then irrationally invest in the large stock dividends.The major shareholders cater to the nominal price illusion of investors through large stock dividends and achieve the purpose of tunneling.The existing research focuses on the reduction of holdings by major shareholders of the tunneling behavior behind the large stock dividends,and there is less research on share pledge as an important interest realization path.The Shenzhen Stock Exchange issued the “Guidelines for the Disclosure of Information on the Large Proportion of Transferred Shares of Listed Companies” in 2018,which has restricted the reduction of holdings of major shareholders under large stock dividends,but the tunneling behavior of the major shareholders' share pledge under the large stock dividends has emerged in the capital market.Therefore,it is necessary to study the tunneling behavior of the major shareholders' share pledge behind large stock dividends.Taking Tianguang Zhongmao as an example,this paper studies the major shareholders of listed companies in China using large stock dividends to cooperate with them for tunneling,and analyzes the rationality of large stock dividends scheme,the motivations,paths and related economic consequences of the tunneling of major shareholders under large stock dividends.Firstly,through study on Tianguang Zhongmao's large stock dividends scheme,it is found that when the company's transfer capacity is insufficient and its operating performance is poor,major shareholders consciously use their control and decision-making power to launch the large stock dividends scheme,which more reflects the will and interests of the major shareholders.Secondly,analyze the motivation for the tunneling of the major shareholders under the large stock dividends.The study found that the major shareholders are faced with the financial pressure of loan repayment and performance compensation.Major shareholders have a strong motivation to use large stock dividends to carry out market value management and cooperate with them for tunneling.Thirdly,based on the perspective of tunneling,this paper finds out the concrete path to realize the interests of major shareholders under the large stock dividends.It is found that major shareholders use large stock dividends to conceal their behavior of reducing their holdings at high share prices.The major shareholders whose shares are in the restricted period use the overvalued price brought by the large stock dividends to share pledge.When the stock price drops sharply to reach the liquidation line,the depreciated equity is transferred to the pled gee(passive reduction)to realize the purpose of cash.Finally,analyze the market response,financial situation and market value after the large stock dividends.It is found that the short-term performance and long-term performance of the company showed a downward trend.It shows that the tunneling behavior of major shareholders under the large stock dividends has caused adverse economic consequences to the company.The study in this paper has enriched the cases in the related fields of the tunneling behavior of the major shareholders' share pledge behind the large stock dividends,and provided evidence support for the regulatory authorities to further strengthen the supervision of the phenomenon of large stock dividends and increase the inquiry on the motivation of large stock dividends.