The Analysis Of Motives And Financial Effect In UFIDA Stock Repurchase

In 1970 s,stock repurchase emerged in western capital market represented by America.Stock repurchase has been mature after experiencing half a century's development.As a capital operation mode,stock repurchase is favorable to optimizing capital structure of the company and improvement over stock value of the company,becoming effective supplement as to dividend policy.The stock repurchase in listing companies of China started later.Due to difference in market system,there is great difference existing between Chinese stock repurchase and western capital market stock repurchase.In 1990 s,due to legal limitation,there are few cases of stock repurchase in listing company.in 2005,CSRC formally issued Public Stock Management(trial implementation)of Stock Repurchase in Listing Company,which signified that stock repurchase has become capital operation mode with rules to follow.Stock repurchase emerges gradually in Chinese capital market and more and more companies start to attempt stock repurchase.The thesis centers on agent and financial effect of stock repurchase with UFIDA,which is beneficial to enriching existing theories about stock repurchase.The contents of the thesis include brief introduction about UFIDA stock repurchase cases,agent analysis on stock repurchase,financial effect analysis on stock repurchase,shareholder wealth change analysis and so on.The thesis adopts cases study to make comprehensive analysis on the influence of stock repurchase from perspectives of financial indicator,economic additional value and financial risk.The thesis analyzes the relation between stock repurchase and shareholder wealth combined with domestic stock repurchase theory and value evaluation system from perspectives of company governance structure and capital structure and so on.The thesis adopts UFIDA stock repurchase for analysis which is developed in six parts.The first part is introduction mainly including research background and significance with summary about domestic research situation in related fields,introduction about research method and ideas of the thesis and generalization of thesis framework.The second part is literature review summarizing related concepts,types and methods of stock repurchase.This part mainly introduces financial agent theory,agency theory,signal transmission theory and financial effect theory related to cases as well as financial background,repurchase method,capital source and market reaction and so on for UFIDA stock repurchase.The fourth part is agency analysis which is thecore of the thesis.The part mainly makes analysis on basic agent of UFIDA stock repurchase with application of agent test method to examine financial flexibility agent,signal agent and financial transfer agent and so on.In addition,the thesis mainly analyzes further agent for stock repurchase considering comprehensively on industrial environment,management situation and company situation and so on.The fifth part is financial effect analysis as well as core content of the thesis.The part mainly analyzes condition of assets and profitability of UFIDA with application of a large amount of charts,financially concluding financial effect generated from this stock repurchase.The sixth part is enlightenment and suggestion.The part summarizes enlightenment brought about by stock repurchase based on UFIDA stock repurchase cases and provides related suggestions for listing companies to implement stock repurchase.With constant improvement over related laws and regulations to listing company stock repurchase in China,there are more cases about stock repurchase.The thesis starts from UFIDA stock repurchase cases to verify agent of stock repurchase and analyze financial effect of stock repurchase with related suggestions proposed.However,the thesis is only limited in single case study,which is difficult to form universal conclusion.It is expected that the study can provide beneficial reference for stock repurchase in listing companies.