A Research On Stock Repurchases Of Chinese Listed Companies

Share repurchasing entered a new era in China,when the regulation rules of listed companies repurchasing tradable shares are issued in 2005.Compared with developed western countries, China develops slowly in share repurchases.Therefore, it is of great signifieance to figure out the motivation and market reaction of share repurehase from both theory and praetice for the development and innovation of our capital market and listed companiesThis paper studied the share repurchases with event study measure which is on the basis of Ball and Brown's API and regression analysis measure.The share repurchase announcements have a positive effeets, and before and after the notices, investors can get aggregate abnormal returns in a long time.In addition,share repurehase may avoid stock value of listed company being underestimated in the market because of transfering positive signal to market. Owing to the difference of the share repurchase method and the type of share, the market reaction have an obvious difference.The market reactions to announeement of the listed companies are obviously associated with the types of share repurchase, financial indicators and capital structure. Multivariate regression results state that the repurchase scale, Non-tradable shares and proportion of the largest shareholder have a strong effect of the market reactions to announeement.Therefore, regulators need strengthen information disclosure on the full range of stock repurchase supervision, further improve Chinese stock system, making it a financial innovation of capital market instruments.