Research On The Effect Of Market Capitalization Management Of Highlanders’ Major Shareholders’ Risk-free Shareholding Increasing

After China’s stock market entered the era of full circulation,the goal pursued by listed companies has also changed from maximizing profits and maximizing net assets to maximizing the value of companies,and market value has become a new standard for measuring listed companies.In 2014,the State Council clearly proposed in the new "Nine Articles of the State" to "encourage listed companies to establish a market value management system",and the market value management of listed companies in China began to be incorporated into the upper design of capital market development,entering a new stage of standardization and institutionalization.Recently,this new type of market value management method came into being,which refers to the major shareholder or actual controller of the listed company,which issues an initiative to the company’s employees to increase the company’s shares,and gives relevant commitments.Although the risk-free shareholding increasing integrates the characteristics of major shareholder increase and employee shareholding,how is the short-term and long-term market reaction after the implementation of this new type of market value management behavior? Can the company’s long-term value creation and value realization needs be realized? Further research is needed.In the case analysis,this article selects Highlander as the case study object,from2018 to 2020,Shen Wanqiu,chairman and general manager of Highlander,in the face of an irrational decline in the company’s stock price,believes that the company’s external value is lower than the intrinsic value,three times before and after to all employees of the company issued a risk-free shareholding increasing initiative.Based on the effective market hypothesis,market timing theory,signal transmission hypothesis and incentive compatibility hypothesis,this paper explores the background,process and motivation of the three risk-free shareholding increasing events of Highlander’s major shareholders,comprehensively uses the event research method and the market value management performance evaluation system,and conducts research and analysis of the short-term market value management effect and long-term market value management effect of this market value management method,with a view to making suggestions for other enterprises that will implement this market value management method.Through the study,it was found that after the implementation of the risk-free shareholding increasing of the major shareholders of Highlander,they all brought short-term excess returns,the positive signal transmission effect was obvious,and there was a short-term market value management effect,but the short-term effect would be weakened with the increase in the number of implementations.For the long term,the risk-free shareholding increasing cannot affect Highlander’s long-term market response and market value management performance,on the one hand,because it is difficult to motivate employees,it cannot play a role in value creation,on the other hand,it stimulates the market for a short time,cannot play a role in value realization,and ultimately cannot produce long-term market value management effects on the company.Based on this,major shareholders need to carefully judge the company’s development prospects,carefully choose risk-free shareholding increasing,and combine other market value management methods after implementation in order to achieve better results,in addition,regulators should make more detailed regulatory requirements for information disclosure,and have prevented risks.