Research On The Impact Of Stock Repurchase On The Performance Of The Company

Stock repurchase is an important financial innovation tool,which has more than half a century of history in the West.After years of development,it has become a common way of capital operation and benefit distribution policy.China's stock repurchase started late,but it has developed rapidly with the continuous improvement of the stock market and the stock repurchase system.The domestic research about stock repurchase is also getting more and more rich,but few scholars in the performance of the company's point of view with empirical methods were studied,the effects of the qualitative and quantitative methods in-depth study of stock repurchase on the performance of the company has very important practical significance,is conducive to the stability of the stock market,to achieve a reasonable return on the performance of the company and give investors confidence.From 2005 to 2007,the country only nine listed companies announced stock repurchase,and due to the immature development of the securities market,the stock repurchase system and technology is not perfect,can learn from the successful cases rarely,therefore,at the time of China's scholars study on the stock repurchase.In this paper,the repurchase of Sample Firms from 2012 to 2015 A shares of the stock market to implement more than 148 of the 9 sectors of the industry's listing Corporation,and most of the repurchase announcement in 2015.Because starting in 2015,the country has a considerable number of companies began to implement the stock repurchase,and most companies use repurchase agreements to repurchase the restricted stock,thus limiting stock repurchase is the focus of this study.The author first uses the empirical method to carry on the comprehensive test to the stock repurchase influence factor and the stock buy back to the company performance whether to have the promotion function to carry on the comprehensive test.The results show that,in the case of listing Corporation repurchase object is restricted stock,the proportion and scope of the repurchase is limited,the proportion of repurchase and repurchase of the company's performance has no significant impact.Through the research on stock repurchase announcement effect and and not implemented before the company share repurchase performance comparison,concludedthat the stock repurchase can indeed improve the performance of the company,especially in the announcement after a period of time to enhance the performance of the company significantly,in line with the foreign theory of signal transmission.I carry on a case study,the use of statistics and financial analysis specific study of stock repurchase company the performance indicators of the trend,that regardless of repurchase object and the proportion of repurchase,repurchase shares after the company's total assets,net assets rate of return,net profit margin,net profit growth rate and earnings per share performance indicators have increased to a certain extent,improve the company's performance indicators,and improve the performance of the company.This paper also specifically studies the timeliness of the stock repurchase,the stock repurchase in a certain period of time effective,the company's performance levels have been higher year by year trend.In addition,stock repurchase may also affected by the international political and economic environment.This paper also for companies listed on the proposed some practice on the stock buyback proposal,is a listed company management layer to provide better guidance and promote the stock repurchase in China's capital market's healthy development.