Research On The Motivation And Financial Effect Of Stock Repurchase In China’s Listed Companies

In recent years,with the continuous improvement of China’s capital market and the gradual entry of the economy into the "new normal",stock repurchases have received more and more attention from listed companies and market attention,and can be effectively maintained as a common means of market value management and capital operation.The listed company’s stock price is stable and protects the interests of investors.At present,the research on stock repurchase mainly uses event research method and other empirical research to explore the relationship between the point of announcement of stock repurchase announcement and the long-term yield of corporate stock price,focusing on the market reaction,and in the case of In the research,the traditional "four-sex indicators" are mainly used for analysis.This paper selects Long Yuli as a representative company for analysis,based on the signal transmission hypothesis and the free cash flow hypothesis,and separately targets the market effects and financial indicators.Analysis,at the same time select companies in the same industry without stock repurchase to compare,from the horizontal and vertical perspectives to further explore the impact of stock repurchase on the company’s financial effects,for the future reasonable use of the company,investors rationally look at stock repurchases and stocks The establishment of a long-term mechanism for repurchase provides reference.The first chapter is the introduction.This part mainly introduces the background and significance of the research,and introduces the following writing and analysis.It also introduces the content of the article by combining the text description and the logical frame diagram,and comprehensively applies various methods,and also introduces the innovation of the article.I hope to fully display and understand the content of the article.The second chapter is a literature review.The literature on the motivation and financial effects of stock repurchase was carried out,and the contents and characteristics of the research were summarized in the literature review based on the “signal transmission hypothesis” and “free cash flow hypothesis” which are most relevant to the research.The analysis below is further guided based on the signalling and cash flow perspectives.The third chapter is the theoretical basis.Firstly,the key concepts such as stock repurchase and financial effects are defined.Based on the key hypotheses summarized above,the three theories related to this are summarized: signal transmission theory,principal-agent theory and MM capital structure theory,respectively.The application of this theory in stock repurchases provides a theoretical basis for the analysis below.The fourth chapter is the statistics and analysis of stock repurchases of listed companies.Firstly,the overall repurchase status of listed companies is calculated from the number of repurchase companies and the repurchase amount.Secondly,according to the key components of stock repurchase,the repurchase incentives,repurchase methods and sources of funds,and after repurchase The performance of the stock price was separately calculated.Finally,the selection of the case company was selected,and the most representative company from the industry trend and the repurchase scale of the individual company,Long Yuli,was selected as the case study for in-depth analysis and for comparable companies.The explanation.The fifth chapter is case analysis.Taking Long Yuli as the case study object,first of all,the company’s basic situation and the stock repurchase process were briefly introduced,and the regulations and policies related to stocks were sorted out.Secondly,the analysis of the motivation of repurchase is based on the signal transmission hypothesis and the free cash flow hypothesis.The specific motivation analysis is carried out from two levels: market performance and internal management.Finally,combined with the above analysis and related theories,the market reaction is verified based on the signal transmission theory.At the same time,based on the cash flow perspective,the key financial indicators,cash flow status and capital use cost before and after the enterprise repurchase are analyzed.And focus on comparison with other comparable companies that have not repurchased,in order to more accurately and accurately explain the financial effects of stock repurchase.The sixth chapter is the research conclusions and prospects.Firstly,it summarizes the literature theory part and the case analysis separately.Secondly,according to the conclusion of the case study,it puts forward suggestions from the two aspects of the company and the supervisor.Finally,it also explains the shortcomings in the research of this paper,and according to this,the future Related research presents a vision.