The Research On The Financial Effect Of Stock Repurchase Of Listed Companies In China

Stock repurchase is a common capital operation mode in mature capital market. Stock repurchase is more and more common in China, which is still in the stage of development, and the stock repurchase is relatively narrow, and there is a big gap between domestic market and overseas market. But after the event, the average daily abnormal returns of the stock sample is lower than the average daily rate of stock repurchase for the purpose of dividend substitution, which is seen in the listing Corporation announced that the stock repurchase behavior to enhance the value of the company. The market reaction is smooth, because most investors doubt whether it will really implement stock repurchase and the repurchase will produce the desired effect.Based on the above analysis, we focus on the stock repurchase behavior, through analysis we see that, first of all, the company of G in the repurchase plan announced on the same day, the shares of G has a larger increase, and the extraordinary yield has also gained a positive effect. It shows that stock repurchase can pass the value of the company's value is underestimated, and stock repurchase can stimulate the stock price. Secondly, stock repurchase has a positive financial effect to G enterprises, which can adjust and improve the equity structure and asset structure of G enterprises to a certain extent and make the company make full use of idle funds to conducive to improve the enterprise's operating capacity and profitability, so as to enhance the enterprise's growth ability. But It reduces the enterprise's solvency and increases the financial risk. In addition, the effect of stock repurchase is short-term. The iron and steel enterprises must be prepared for long-term response to survive the winter.They should be based on market supply and demand, and ensure product quality, and improve production efficiency, then enhance the company's value. At the same time due to the imperfect market, stock repurchase may bring some negative effect. In view of the problems in this paper, we put forward the countermeasures,...