Study On The Motivation And Economic Effects Of Guaranteed Shareholding Increase Of C&S Paper Co.,Ltd

Guaranteed shareholding increase was created during the stock market downturn,demonstrating the strong voice of the underwriter to protect the market,the confidence of the underwriter in the company’s prospects and the affirmation of the investment value of the company’s shares.As the phenomenon of guaranteed shareholding increase is active in the capital market,it has attracted increasing attention from all walks of life.There are some problems that need to be solved in the development of guaranteed increases.Analysis of the motivation of the company’s implementation of guaranteed increases can serve as a guide for investors,allowing them to think and invest rationally from their own standpoint,and can also remind listed companies not to blindly release announcements to recognize the substance and meaning,to avoid adverse consequences,so that guaranteed increases play their proper role.Unlike most of the companies that made guaranteed increases,C&S Paper Co.,Ltd issued an guaranteed increase on May 10,2021,when the share price was at a high level,and the announcement attracted widespread attention from the society once it was released.Therefore,this thesis takes C&S Paper Co.,Ltd as the research object and uses literature research method,case study method and event research method to study in depth the motivation of the company’s controller to issue guaranteed shareholding announcement at this time and the economic consequences,and analyze the secondary market reaction after the announcement and the impact on the company,employees and small and medium investors.After the study,it is found that the motives of C&S Paper Co.,Ltd’s actual controller to release the guaranteed shareholding announcement are multifaceted.In addition to the recognition of the company’s value and confidence in the company’s development mentioned in the announcement,it also includes stabilizing the company’s share price at low cost,satisfying the company’s need to retain and motivate employees,and creating conditions for the subsequent reduction of executives’ holdings.Although underwriting can boost the share price in the short term and suppress the downward trend of the share price,in the long run,guaranteed cannot support the share price of the company for a long time,without solid performance support,it cannot resist the systemic risk,and those external investors who think that guaranteed is favorable information may cause their capital to be trapped once they follow the trend to buy,thus causing their own property losses.At the end of this thesis,it is suggested that investors should treat guaranteed increase rationally and be alert to the risk;regulators should accelerate the improvement of relevant laws and regulations to regulate the holding increase behavior and strengthen the company information disclosure and protection system;and listed companies should focus on solid performance and improve the internal mechanism.