Empirical Research On Stock Repurchase Of List Companies After The Reform Of Non-tradable

Share repurchase is an important capital method to improve inside stock value by reducing their volume of stocks outside. It a way for corporate to buy back their stocks from capital market in some price according to the methods of open-market stock repurchase, Bid repurchase and others. There are several modes of stock repurchase, such as open-market repurchase, bid repurchase and treaty repurchase, etc. Open-market repurchase is the most popular one in developed capital market.In China, because of the early cavil's confinement and faultiness, the first repurchase case did not come out until 1992. And the early cases'objects were government-owned shares, shares abroad or shares in Hong Kong market by the way of oriented repurchase. In June 2005, the China Securities Regulatory Commission promulgated the reform of non-tradable shares, and in October 2005 the Company Law's third amendment open the door to open repurchase shares to the public, and these legislation immediately aroused positive reaction in the market, Hunan Valin Steel Co., Ltd. And a number of listed companies announced stock repurchase plan. Moreover, as performance of the share reform and the achievement of full circulation, open-market repurchases of China's listed companies is bound to take increasingly important effect on the capital market's development. Therefore, the study on stockholder wealth of open-market repurchase of listed companies is of important significance.