Research On Motivation And Market Effect Of Fallback Stock Raising

In July 2015,China's stock market plummeted on a large scale.In order to avoid the systematic risk caused by the continuous decline,the state issued a series of emergency rescue policies to stabilize the capital market,among which the CSRC issued a notice to encourage listed companies to actively take the means of increasing their holdings to stabilize the stock price.In this context,as a new way of increasing the holding,the "underpricing" increase came into being.Since then,there have been many upsurge of "underpricing" increase in China's A-share market,which has aroused strong social concern.But at present,there is no consistent conclusion in the academic research on the causes and market effects of "double bottom" increase.At the same time,with the frequent occurrence of "double bottom" increase,many risks such as high proportion of shareholders' equity pledge and polarization of the effect of "double bottom" increase begin to emerge.In this paper,through the combination of case analysis and theoretical research,first of all,we make statistical analysis on the companies that increase their holdings in China's capital market,and summarize the motivation and effect of the increase;then,we select Shenzhen Kelu ElectronicTechnology Co.,Ltd.,a typical representative,as a research case,to analyze the market effect of the three increase,and make a comparative study The reason for the difference.It is found that the motivation of the company's issuing the underpricing increase is concentrated on stabilizing the stock price,safeguarding the shareholders' rights and interests,and reducing the implementation cost;the event study method shows that the underpricing increase will have a positive effect on the company's stock price in the short term,but it can not effectively boost the stock price in the long term,and its actual effect is closely related to the company's issuing time,company value and company fundamentals.Finally,according to the research findings,effective suggestions are put forward from three perspectives: companies,market investors and regulators.In this paper,we choose the emerging underpricing increase in the capital market as the research object to study and summarize the causes and effects of the announcement of underpricing increase in the capital market during 2015 and 2018,which enriches the relevant research of underpricing increase to a certain extent,and makes the conclusion more comprehensive and reliable.