A Case Study Of Stock Repurchase In KPC

Listed companies buy a certain number of shares of the company in the securities market is named the share repurchase.It was born in the last century in the United States under the background of the great depression in seventy;and it was used instead of cash dividend.Later,it got rapid progress in the western developed countries due to its advantages such as optimizing the company's capital structure,enhancing investors' confidence,preventing a hostile takeover or motivating managers.Compared to the west,share repurchase in China began in the 1990 s.Until the reform of the shareholder structure in 2005,with the age of the total shares outstanding,it was more and more recognized and used by listed companies in our country.Therefore,the research on the market reaction and the impact on the financial aspects of the company's stock repurchase behavior are of great significance to the deepening of the theory of behavior in the country and the subsequent repurchase practice.Based on the above consideration,at first the basic theory of stock repurchase and the research results of scholars were summarized and sorted in this paper;and then the development situation of domestic stock repurchase is briefly analyzed;and on this basis we choose the purpose of stimulation of the stock repurchase of the KPC as the case of this article,using the method of event and the way the financial ratio analysis the effect of market research and the company performance by the stock repurchase,draw the following main conclusions:(1)the change of the non-tradable shares to flow is the domestic implementation of the behavior of objects,but also the motivation of the behavior from the motivation of the single to multiple motives,and encourage for the motivation of stock repurchase behavior has become the domestic share repurchase of listed companies in recent years popular motivation from the third chapter;(2)stock repurchases can convey a positive signal to the market,but in the process of its implementation may have information in advance as well as the leakage phenomenon;(3)encourage as the main motivation of stock repurchase behavior of the company's performance to a certain extent,and there exists a positive impact,which is helpful to develop the value of the company and the company's long-term development.