TITLE:
Does Shareholder’s Share Pledge Induce High Stock Dividends? —An Empirical Test Based on the Data of GEM Companies
AUTHORS:
Hui Shen
KEYWORDS:
High Stock Dividends, Equity Pledge, Transfer Policy
JOURNAL NAME:
Open Journal of Business and Management,
Vol.7 No.2,
April
26,
2019
ABSTRACT: The
high delivery of listed companies is a unique way of dividends. Although there
is no change in the company’s operating capacity, it always attracts market
attention and causes stock prices to rise in the short term. However, this kind
of non-substantial dividends often masks. The
major shareholders of listed companies reduced their holdings to cover the
lifting of bans and other benefits. As a refinancing method for listed
companies, equity pledges require the stability of stock prices due to the
existence of passive liquidation lines, especially in the process of market
volatility and continuous shift of focus. This paper first summarizes the
previous studies on the behavior of high dividends, and uses the GEM as the
background, using the data from 2015 to 2018, based on the previous research,
adding the factor of equity pledge, using the Logit model to study nearly three
The impact of the equity pledge rate of the listed companies on the GEM on the
probability of the “high-delivery” dividend policy announced by major
shareholders was attempted to make recommendations for the newly introduced
“high-stock dividends new regulations”.