The Research On The Motivation And Consequences Of "Quasi-High Stock Dividends"

Because the dividend distribution method is closely related to all stakeholders,it has always been sought after in our country’s capital market.The media are hyping it up,and listed companies have attracted investors’ attention through the stock dividends,and realized the purpose of speculating on stock prices in the short term.Speculative psychology drove investors to make irrational investments and buy company stocks,and ultimately their interests were damaged due to the fall in stock prices.In the face of this chaos,the Shanghai and Shenzhen Stock Exchanges respectively issued the "Guidelines for Disclosure of High Stock Dividends Information Disclosure of Listed Companies" on November 23,2018,which have clear indicator requirements for listed companies that are ready to carry out high stock dividends.However,because the Shenzhen Stock Exchange has different standards for the definition of high stock dividends for different sectors,this has caused some companies to use the difference in the stock dividends ratio standard to "play edge ball"(hereinafter referred to as "quasi-high stock dividends"),and this behavior will not be limited by the guidelines in reducing shares,etc.This paper takes Shandong Yisheng Breeding Livestock and Poultry Co.,Ltd.(hereinafter referred to as "Yisheng Shares")as the case study object,based on the policy of the "Guidelines for High Stock Dividends",to study the motives and consequences of the quasi-high stock dividends.First of all,this paper introduces the background of quasi-high stock dividends,regulatory system for high stock dividends and the development history of quasi-high stock dividends of listed companies,and analyzes the mechanism of quasi-high stock dividends from motives and consequences aspects;Secondly,this paper introduces case company Yisheng shares and sort out the dividend distribution,the lifting of the ban on restricted shares,the reduction plan and the non-public offering of shares of Yisheng shares;Finally,understanding Yisheng shares do not meet the conditions of high stock dividends,the motivation and consequence analysis of its quasi-high stock dividends are carried out.The consequence analysis is mainly studied the impacts on the company,major shareholders and investors.Above all,according to the study of Yisheng shares,it can be seen that even listed companies that do not meet the requirements of high stock dividends indicators can still achieve some of the effects of high stock dividends through the behavior of quasi-high stock dividends.The shareholders of listed companies can tunneling with the lifting of the restricted shares through quasi-high stock dividends,causing damage to the interests of investors.Through the analysis and summary of the motives and consequences of the quasi-high stock dividends,this paper puts forward corresponding suggestions for listed companies,investors and regulators,so that the dividend policy can better match the company’s performance,rather than be used as a means of capital speculation,to promote the long-term stable development of the capital market.