Research On The Motivation And Economic Consequences Of Listed Companies' Bottom-up Holdings

In 2015,the stock market experienced a sharp rise and fall.After reaching 5178.19,the market index of the previous period soared sharply and fell to 2850.71 in a short period of two months,with a decline of more than 45%.The stock market collapsed and listed companies stopped trading one after another.In order to resist systemic risks,the state actively raised market rescue measures and issued a series of policies and measures to encourage listed companies to increase their holdings and limit their holdings.? In this context,the trend of senior managers' increasing ownership has emerged on a large scale,and the phenomenon of "bottom-up" has also appeared in everyone's vision.The bottom-up ownership refers to the actual controller of a listed company who advocates employee's increasing ownership of the company's stock in his own name,and promises to bottom-up the employee,with the loss compensated by the advocate and the income owned by the employee.As the leading enterprise in China's security industry,Anjubao's stock has fallen 44%since 2017.After the announcement,Ajubao rose 39% in four trading days.Firstly,this paper introduces the background and development of the "bottom-up" phenomenon,and summarizes its causes.Then,taking the "bottom-up" trend emerged in June 2017 in China as the background and Anjubao Company as the research object,this paper studies the "bottom-up" behavior adopted by its actual controllers and major shareholders under the circumstances of the continuous decline of stock price and performance,and deeply analyses this.The deep motivation of this kind of behavior is to analyze the secondary market reaction caused by the bottom-up behavior by using the event study method,and to analyze the impact of this behavior on the company's performance.This paper finds that under the background of the overall market plunge and the stock price continuing downturn,the outside investors will regard the bottom-up as the good information of Listed Companies in the short run,but the listed companies with the bottom-up support can not fully resist the systemic risk and effectively boost the stock price in the long run if their actual financial situation and future development are not good.It does not necessarily improve the company's value.Investors may run the risk of losing their wealth when they follow the trend to buy the concept stocks with a bottomless increase.Finally,it reminds market investors that they should raise their investment rationality and safety awareness,rationally view the behavior of listed companies to launchbottom-up,and suggests that listed companies should make reasonable disclosure of information and regulate governance.Regulatory authorities should strengthen the supervision of the behavior of large shareholders to issue bottom-up.