Research On The Dividend Policy Of Malion New Material "High Transfer"

Dividend policy is a method for listed companies to distribute dividends to return investors,and it also reflects the listed company’s operating results and future development capabilities.Listed companies frequently launch "High Transfer" dividend policies.On the one hand,it can expand the scale of equity,enhance stock liquidity,and attract investors;on the other hand,the stock dividend policy can also reduce the outflow of working capital and reduce corporate reinvestment costs.However,due to the speculative psychology of market investors eager to obtain short-term gains,listed companies in my country’s capital market often use "High Transfer" to cooperate with major shareholders to reduce their holdings to transfer benefits,which harms the interests of small and medium shareholders.Based on the research of domestic and foreign literature,this paper introduces the status quo of "High Transfer" in my country’s capital market.Taking the GEM listed company Malion New Materials as the case study object,it analyzes the two times "High Transfer" of Malion New Materials,analyzes the company’s financial capabilities from the aspects of growth,profitability,and operational capabilities,and then use hard indicators such as the capital reserve per share and the formula for the transfer of shares and compare it with the same industry to analyze the company’s ability to transfer shares,and then analyze the motivation of Malion New Materials’ implementation of "High Transfer".Finally,it analyzes the short-term market response and long-term impact brought by the implementation of "High Transfer" by Malion New Materials.Based on the above research,this article draws the following conclusions:(1)Although Malion New Materials has strong financial capabilities,its ability to send and transfer is relatively weak,which is not enough to support its two "High Transfer";(2)The main motivations of Malion New Materials’ "High Transfer" are to attract investors,expand the scale of equity,improve stock liquidity,and avoid equity pledge risks;(3)Malion New Materials’ two "High Transfer" plan announcements have obvious short-term positives market reaction,while the impact of the implementation of the announcement on the market is relatively limited;(4)Decreased stock liquidity,downturn in the company’s stock price,and decline in financial stability are the long-term impacts of "High Transfer" of Malion New Materials on the company.At the same time,this article puts forward the following suggestions for improvement:(1)Internal management should improve the company’s internal governance structure and pay attention to the matching degree of dividend policy and development level;(2)External investors should increase risk awareness and professional analysis capabilities to avoid blindly following the trend of investment,Rationally treat "High Transfer";(3)The market supervisory level should improve laws and regulations,formulate dividend policy standards,increase the scope of supervision,and strengthen penalties.