Study On The Motivation And Economic Consequences Caused By Stock Repurchase Of Canny Company

Stock repurchase refers to the listed company to stabilize the stock price,equity incentive,and the use of the own asset or financing funds of a firm to recover the stock,reduce the share of the company’s circulation.As a capital operation,stock repurchase can optimize the capital structure,enhance the value of the shares of company,and also can be an effective complement to the dividend policy of a firm.Compared with the western developed countries,the stock repurchase of Chinese listed companies,combined with China’s actual conditions,have unique characters and late start.In the early days of the securities market,listed companies "dominated","with the same equity" situation abound,and then stock repurchase law to take a strict limit attitude.With the deepening of reform and opening up,the spin-off reform in 2005,China’s securities market is more and more mature,the government gradually develop from the "management" government to "service" government transformation,slow to relax the stock repurchase restrictions on stock repurchase laws and regulations are also introduced.In this paper,the stock repurchase as the object of study,to repurchase motives,economic consequences as the starting point,the use of case analysis of equity repurchase capital operation for a detailed analysis.On the basis of reading a lot of literature,this paper first elaborates the related concept and theoretical basis of stock repurchase.This paper collects the data of the stock repurchase announcement of Shenzhen and Shanghai listed companies,analyzes the number of stocks,motives and so on,and the stock return of China’s development status quo.This paper chooses Canny Elevator Company as a case sample to analyze and verify the real motivation of stock repurchase and use the relevant financial data before and after the stock repurchase to learn the stock repurchase from market effect and financial influence.The economic consequences of the Group.Through the analysis of motivation Canny elevator company disclosed only in accordance with the signaling hypothesis,through the financial data analysis shows that there are other causes.In the short-term market effects,After the comb on the stock repurchase can enhance the company’s share price,but also to increase the financial risk,"dominance" phenomenon is more obvious,large shareholders to repurchase the reduction during the phenomenon,so that the interests of small shareholders are occupied.Aiming at the existing problems in the process of stock repurchase,perfecting the governance structure of listedcompanies the establishment of large shareholders;perfect the reduction of information disclosure system;strengthen market supervision,strictly control the company’s information disclosure.Therefore,according to the contents of this paper summarize the experience and lessons,we hope to be able to lift industry management of Listed Companies in the stock repurchase to provide business decision-making guidelines meager.