The Study On The Motivation And Effect Of Fallback Stock-Raising

In recent years,China's stock market has fluctuated several times,and the bull and bear markets have frequently changed.Fallback Stock-raising originally appeared in the stock market disaster period when the bull market suddenly turned into a bear market in 2015.Starting from the second half of 2014,the A-share market index rose all the way,reaching the highest point of 5178.19 in June,and then quickly changed its performance.In less than a month,the stock index fell rapidly from the highest point to below 3500 points.In the face of the sharp decline in the stock market,the state has proposed a series of measures to encourage the actual controllers of listed companies and directors and supervisors to increase their shares in the company in order to save the capital market.Against this background,Tempus International first proposed a Fallback Stock-raising,and many A-share listed companies followed suit.Since then,every time the stock market plummets,Fallback Stock-raising will occur.A total of 5 large-scale Fallback Stock-raising surges have occurred in the A-share market,which has led to the formation of the concept of Fallback Stock-raising,which includes more than 100 listed companies.However,with the frequent increase of Fallback Stockraising,various problems have also surfaced,such as the unknown real motivation of the actual controller and the imperfect follow-up supervision by the regulatory authorities.These problems are not conducive to the healthy development of the capital market and have greatly affected the market Investors.Based on this background,starting from the theory and taking the Huawei culture as the case analysis object,the analysis focuses on the capital market behavior of Fallback Stock-raising,and explores the motivations and effects of Fallback Stockraising.First of all,the definition,development history,characteristics and types of Fallback Stock-raising are explained theoretically.This thesis analyzes the general reasons for Fallback Stock-raising in the capital market.From the perspectives of employees,actual controllers,and the company,the various effects brought about by the Fallback Stock-raising in shareholdings were explained separately.Secondly,the analysis was based on the prestige culture as the case analysis object,starting from the basic situation of the company and combining the company's announcement.And news materials,sorting out the overall process of the Huawei Culture Fallback Stock-raising,and on this basis,analyze the true intention of the Huawei Culture actual controller to issue a pocket increase,and issue an announcement to the company's actual controller.The effect is analyzed in depth.Finally,the corresponding research conclusions and enlightenments are obtained based on the above analysis.In the analysis process,this paper uses the market timing theory and signal transmission theory,and uses relevant data to analyze the motivation of the actual controller of the case company to promote the increase of employee holdings.Then,this thesis uses the event research method to carry out the market effect brought by Fallback Stock-raising analysis.In this paper,we use qualitative and quantitative methods,and comparative analysis to analyze the influence of pocket-style holdings on different subjects.After analyzing the case of Huawei Culture's Fallback Stock-raising,the following three conclusions are reached:(1)raising the stock price is the ultimate purpose of the actual controller of Huawei Culture to issue a Fallback Stock-raising announcement;(2)Fallback Stock-raising increasing the stock price in the short-term cannot reverse the long-term downward trend;(3)The Fallback Stock-raising has a double-sided effect on all parties.Based on this,four research implications are obtained as follows:(1)enterprises should improve emergency planning to deal with stock price fluctuations;(2)major shareholders should increase their holdings simultaneously to enhance the effect of Fallback Stock-raising;(3)regulatory authorities should strictly limit major shareholders Decrease after the actual controller issued a Fallback Stock-raising announcement(4)increase the information disclosure system for the implementation of the Fallback Stock-raising.