Research On The Motivation And Effect Of "Risk-Free" Shareholding Increasing Of Woer Heat-Shrinkable Material Company

When the A-share market falls sharply,in order to stabilize the market environment,the state usually encourages shareholders and executives of listed companies to increase their holdings,and some major shareholders and actual controllers of listed companies therefore initiate an initiative to employees to increase their holdings of the company’s shares,and promise to compensate them with personal funds if losses occur.As an emerging way to increase holdings,it has attracted much attention since its birth,especially in the downturn stage of the stock market,and up to now,more than 100 listed companies have implemented a "risk-free" shareholding increasing.The "risk-free" shareholding increasing can have a certain boost effect on the company’s short-term stock price,but with the increase of the number of "risk-free" shareholding increasing cases,the true motives of the major shareholders are not clear,and the unclear accounting treatment of listed companies is gradually revealed.These issues may affect the quality of information disclosed by listed companies and financial statement data,resulting in losses for investors.On June 7,2017,the major shareholder and actual controller of Woer Heat-Shrinkable issued an initiative to employees to increase their holdings,encouraging them to buy the company’s shares and cover the possible losses.This paper takes the "risk-free" shareholding increasing implemented by the major shareholder of Woer Heat-Shrinkable Materials as the research object,and first analyzes the motivation of the "risk-free" shareholding increasing,which mainly includes three aspects: solving the three aspects of delivering good news,alleviating equity pledge risks and achieving incentive compatibility.The research on the effect of the "risk-free" shareholding increasing first uses the event research method to analyze the short-term market reaction of the increase announcement,then uses the factor analysis method to compare and analyze the long-term financial situation before and after the implementation of the "risk-free" shareholding increasing,and finally evaluates the non-financial effect of the "risk-free" shareholding increasing by analyzing the capital structure and innovation ability of Woer Heat-Shrinkable Materials.The results show that the "risk-free" shareholding increasing has a boosting effect on the stock price in the short term.At the same time,the "risk-free" shareholding increasing can have a positive effect on the company’s long-term effects,and have a positive impact on the company’s capital structure and innovation ability.In view of the problems existing in the process of "risk-free" shareholding increasing,this paper puts forward feasible relevant suggestions from four aspects: strengthening information disclosure,improving relevant systems,raising the implementation threshold and standardizing accounting treatment,for the reference of regulators,listed companies and investors.