Author(s)

Tianxiang Leng and Zhiyu An

Corresponding Author

Tianxiang Leng

ABSTRACT

In recent years, the high-split behavior of listed companies has increasingly attracted regulatory attention. Unlike the mature markets such as the United States, listed companies of China have a higher willingness to distribute share dividends. Short-term surges and declines of high-split companies have seriously damaged the interests of investors. This paper uses the Logistic model to study the motivations of high-split behavior of listed companies by using Chinese A-share listed companies from 2014 to 2017 as samples. The research results show that the optimal price theory, signal transmission theory and catering theory can all explain the high-split behavior of listed companies in the Chinese A share market, indicating that the high-split behavior of listed companies in the Chinese A share market is mainly to increase the liquidity of stock, to convey to investors the company's good operating information and cater to investors' preference for share dividends.

KEYWORDS

High-split, dividend distribution theory, Logistic model