Does Corporate Performance Influence the High Transfer Type Chosen by Companies?: Research of Empirical Data Based on Chinese Listed Companies

Xiu Wen, Jiaren Zhao, Xiaoming Zhang

Abstract: Based on the empirical data of Chinese listed companies, this paper investigates the relationship between a company's performance and its selection of different types of high transfer behaviours. The study found that the stronger the performance and profitability of a company, the more likely it is to follow a dividend distribution policy of high-proportion bonuses. The reason is that when poorly performing companies lack retained earnings, insiders are more likely to throw their shares with a high price through a distribution policy of high increase by transferring shares to achieve their own objectives.