Research On The Motivation And Effect Of The KINGFA Share Repurchase

After more than half a century of continuous development, the share repurchase has gradually become a common capital operation mode and business strategy for the western mature capital market. As a way of capital operation, stock repurchase is beneficial to optimize the capital structure, enhance the share price, thereby enhancing the value of the enterprise, and it plays an important role in dividend distribution and anti takeover. Stock repurchase refers to a company according to certain procedures issued or outstanding to repurchase shares of the company's behavior. Due to capital market started late, initially share repurchase in slow development of our country, but with the 2005 "listed company to repurchase shares of the public management approach(Trial)," the implementation, China's Listed Companies in stock repurchase increase gradually, especially global economic crisis in 2008, the stock market has experienced a continuous decline, some enterprises think that the value of the company is undervalued, or to implement equity incentive plan and other reasons,launched plans to buy back shares, share repurchase is to protect the interests of investors, to improve the value of enterprise, and promote the equity incentive plan is one of the important means. Therefore, it is of great significance and function to explore the motivation and effect of share repurchase.This paper adopts the method of case study, for when the continuous decline in the stock market of our country is in, the listed companies take the motivation and effectiveness of the method of stock repurchase are discussed and through the KINGFA technology repurchase cases were in-depth research analysis, repurchase motivation analysis by means of market environment and the enterprise's own situation, with cumulative abnormal return method and financial statement analysis,for repurchase cases arising from the market effect and the financial effect analysis and draw conclusions. Then the case study is carried out to promote the implementation of the share buy back strategy in the period of stock market turmoil in China, and put forward constructive suggestions.