On The Influencing Factors And Market Effect Of The "Risk-free" Shareholding Increasing

“Risk-free” shareholding increasing is an act that the major shareholder protects the staff increasing shareholding from stock price falling.It appeared during the stock disaster in the June 2015.After several years,“risk-free” shareholding increasing has gradually become an important choice for companies in response to stock price declining.It was not until June 2017 that the act attracted the attention of the Shenzhen Stock Exchange.Then the first notice was issued,which indirectly identities this act and issues specific disclosure requirements.However,“risk-free” shareholding increasing has not yet caused widespread concern in the academia.This paper consists of six parts to analyze the influencing factors of the “risk-free” shareholding increasing from four dimensions and to find the market effect of the behavior in a specific case.First,the literature on the motivations and market effects in the stock holdings and share repurchases is used as an analytical basis.Secondly,by combing the development status of “risk-free” shareholding increasing,this paper can find the time characteristics,company characteristics,executive characteristics and the market effect of this behavior.Furthermore,we discuss the influencing factors from the dimension of the market,the company,the executives and method itself by theoretical analysis.Finally,this paper uses a case to analyze the influencing factors and the market effect of “risk-free” shareholding increasing.This paper selects Clou Electronics Co.,Ltd as our case to analyze the influencing factors of “risk-free” shareholding increasing from the dimensions of the market,the company,the executives and method itself.Besides,this paper uses the event research method to analyze the market effect of “risk-free” shareholding increasing used by Clou three times.We find “risk-free” shareholding increasing can produce the positive market effect,but the maintenance time is short.Based on the influencing factors,the Clou has certain problems at the time that the “risk-free” shareholding increasings are proposed.And the executives factors of Clou are obvious.Thus,it has a certain negative impact on the market effect caused by “risk-free” shareholding increasing.This paper analyzes the influencing factors and market effects of the “risk-free” shareholding increasing.It has positive significance for enriching the theoretical research.At the same time,this paper provides suggestions on how to disclose information when a company wants to use “risk-free” shareholding increasing,and also provides some advice for investors to identify this behavior.This paper has some shortcomings.On the one hand,the theoretical analysis of this paper may be incomplete.On the other hand,this paper only studies one company so that it has certain limitations.