The Study Of Stock Repurchase Based On The View Of Finance

Stock repurchase means Used company buy their own share back on the open market. Lised company can cancel stocks bought back after stock repurchase is finished, but in most cases, lised company regard stock bought back as the stock one to keep, it still belong to the stock issued outside, but does not participate in the calculation of the earning per share (EPS) and distribution of income. It can be used for different purpose in the future, or will be sold while needing fund. Stock repurchase is an important dividend policy, and the important method to improve firm's management, optimize the structure of enterprise's capital too. Stock repurchase as one managing money matters behavior in ripe security market, not only exerting a certain influence to each sides participated in the market, but also bring the prominent financial effect for lised company.Stock repurchase evolves from lised company evading the regulations about cash dividend of the government, over the past more than 30 years, stock repurchase go through a evolution of its quantity from little to more, scale from small to big, function from simple to complicated at western security market. Meanwhile, a lot of foreign experts and scholars made the rich achievement to the theoretical research of stock repurchase too, up till now has already proposed nine kinds of theory hypothesis about stock repurchase, including evading payment of tax hypothesis, earning per share hypothesis, financial lever hypothesis, wealth shift hypothesis, signaling hypothesis, control power market hypothesis, free cash flow hypothesis , financial flexibility hypothesis and stock option hypothesis. In the western stock repurchase practice, have already presented five kinds of buy-back ways: Open market buy-back, fixed price tender offer buy-back, Dutch auction buy-back , negotiated buy-back and transferred and sold right buy-back. While carrying on buy-back actually, the company will follow different repurchase motives and different market environments faced, use different buy-back way and price tactics reach its effect expected. In the west, stock repurchase has already become one indispensable financial instrument in security market and lised company, and it is one kind of dividend policy, a rearrangement of assets way, also one development tactics of dealing in.Stock repurchase still belongs to new things for the security market of our country and firm, its production reason in our country is different from the western countries too. Because our country has the problem that the stock is divided and put, the stock right structure of most Used company is unreasonable, exist state-owned stock proportion cross heavy and insider control issues, and influence the completion of corporate governance structure generally for state-owned enterprise, that has hindered the benign development of Used company in our country, then in order to solve this problem, stock repurchase was led to security market of our country in the 1990s, and become a effective method and route for lised company to adjust the stock right structure and improve the company governance structure. With the constant development of our country capital market and lised company, lised company increase to stock demand of buy-back constantly, in order to standardize the behavior of the buy-back public stock of lised company, China Securities Regulatory Commission has made" the buy-back public stock management of listed company (try out) ", and announce it on June 16 , 2005. It means stock repurchase has entered a new stage in our country.In this paper, through to the summary of the stock repurchase case that takes place in early days in our country and positive research to several public stock prediction schemes of repurchase announced recently, have summarize the characteristic of stock repurchase of our country and put forward its existing problem and solution directed against these problems. In order to offer the support in theory and the guidance in practice for the listed company of our country can utilize this financial means of stock buy-back better, and facilitate listed company's improving the operation level of the capital and improving the corporate governance structure.