Stock Repurchase Motivation And Financial Effect Of Listed Companies

Stock repurchase refers to the funds acquired by a listed company using its own funds or other financing channels to buy shares of the company from the stock market,so that the number of stocks that are out of stock will be reduced,so as to achieve the purpose of raising share price or equity incentive.It first appeared in western capitalist countries,and it was an effective way of capital operation.Compared with the west,the stock repurchase is late in our country and the development is not perfect,and the relevant legal restrictions are more.However,this also makes the stock repurchase in the early stage of our country show a unique "one stock","the same share of different rights" and other unique characteristics.Different from the western stock raising and dividend distribution,the early stage of stock repurchase in China is mainly used to improve the capital structure of state-owned enterprises and optimize the governance mode of enterprises.With the introduction of the policy of reform and opening to the outside world,the securities market is becoming more and more mature.The function of the government has also shifted from management to service.The restriction on stock repurchase has been released slowly,and relevant legal documents have been promulgated to standardize and mature it.In 2015,the SFC issued a "five selection one" notice to encourage listed companies to take stock repurchase measures.The promulgation of these documents further regulate the behavior of stock repurchase,which has stimulated the enthusiasm of the stock repurchase of the listed companies.In 2016,the volatility of the stock market caused by the fusing mechanism caused the stock repurchase to attract more attention.In this paper,we use case study method to make a detailed analysis of the causes and financial effects of stock repurchase,and further understand the capital operation mode of stock repurchase.This paper describes,in reading a lot of literatures at home and abroad at first,introduces the research background of the stock repurchase and domestic and foreign scholars on the theory of stock repurchase;the related concepts and theories and then explains,emphatically discusses the popular stock repurchase hypothesis and China’s unique development process,and a few of these the number of years,China’s stock repurchase way,the object is summarized,the status quo of stock repurchase in china.In this paper,the Xinhu Zhongbao Co.,Ltd as a case of real object,the implementation of the stock repurchase motivation of the multi angle analysis,and financial indicators will be compared before and after the stock repurchase,the impact on the company’s financial,finally obtained from above the enlightenment and the existence of stock repurchase in China’s securities market problems your advice.The following conclusions are drawn through the study: first,the motivation of stock repurchase in China has its particularity;second,stock repurchase does not necessarily improve the value of the company;third,the effective use of stock repurchase is weak in our country;fourth,the signal transfer function of stock repurchase is short in China;fifth,stock repurchase of our country is held by stock repurchase.There is an irrational attitude.This paper hopes that through the above research,we can make a further understanding of stock repurchase,and provide a little effort for the listed companies to use stock repurchase to promote the development of the company and to help investors to look at the stock repurchase correctly.