Analysis Of Stock Repurchase Of Shanxi Coal Industry Company

With the rapid development of China's economy and the continuous maturity of the capital market,which in turn affects the capital operation and business operations of listed companies.The positive effects of listed companies' implementation of stock activities are very large.The most direct impact is that the number of shares in circulation of the company is reduced and the ownership structure changes.On the other hand,the stock repurchase can affect the financial indicators such as the solvency and profitability of listed companies through the stock repurchase.he company's stock price can be stabilized and improved,and then the good effect of equity incentive can be realized.Therefore,it is very necessary to study the stock repurchase activities of listed companies,so that listed companies and investors can fully understand the stock repurchase activities,and thus better use the stock repurchase tool.Compared with the developed capital markets in the West,China's capital market has problems such as late start,small scale of stock repurchase,and low frequency of stock repurchase.However,with the rapid development of the economy,the increasingly perfect laws and regulations of listed companies,and the implementation of the share-trading reform,China's capital market is increasingly on a mature track.More and more listed companies recognize that share repurchase as a financial tool plays an indispensable role in the improvementof corporate governance structure and capital structure optimization.In October 2008,the China Securities Regulatory Commission Loosing the stock repurchase policy and promulgating the Supplementary Provisions on the Repurchase of Shares by Listed Companies in the Form of Bidding Trading,this supplementary regulation makes the application for stock proposals change from administrative review to simple and only requires filing.In addition,this supplementary regulation not only actively promotes the development of China's capital market,but also plays a normative role in the stock repurchase behavior of listed companies in China.On April 1,2013,the Shanghai Stock Exchange issued the“Guidelines for Listed Companies to Repurchase Shares by Centralized Auction Trading(Revised in 2013)”,which aims to protect the interests of listed companies and investors and regulate the implementation of stock returns.Purchase method.In themiddle of 2015,in the context of the ups and downs of the Chinese stock market,in order to save the stock market,the regulators required listed companies to adopt“5-to-1” schemes such as overweight and repurchase,and the implementation plan of listed companies increased.Holding back the tide of repurchase,it also makes more people pay attention to stock repurchase.After reviewing the relevant literature and theory of stock repurchase,this paper conducts a separate and in-depth analysis of the case of Shaanxi coal stock repurchase.In the case analysis,the main research methods are literature research method,event research method and financial comparison.The law,in turn,explores the conditions,motivations and effects of the stock repurchase of Shaanxi Coal Company.Emphasis is placed on the research on the financial effects and market effects brought about by the repurchase of Shaanxi coal stocks.Based on relevant financial indicators and data,the motives and effects of listed companies' stock repurchases are explored.