Research On The Effect Of Joyson Electronics Stock Repurchase

Stock repurchase originated in Western countries.Under the mature market environment,stock repurchase has become a common capital operation mode in western capital markets.However,in China,due to the different nature of the market and its late start,stock repurchase is still in the exploratory stage.In 1992,the first listed company in China began to try stock repurchase,but in the absence of relevant laws and regulations and market experience,the number of listed companies that implemented stock repurchase in the late 20 th century was very small.In the second half of 2015,China's stock market suffered a serious stock disaster,the stock price of 1000 shares fell sharply,the stock price of many listed companies fell into the valuation depression,and stock repurchase activities began to occur frequently.Domestic scholars gradually put the impact of stock repurchase on listed companies into the focus of theoretical research.This paper takes the case of Junsheng Electronic Stock Repurchase in 2018 as the research object.Through the event study method,DuPont analysis,EVA model and other research methodologies,this paper deeply analyses the financial effect,market effect and the impact on enterprise operation of stock repurchase,and provides a reference for the theory and practice of stock repurchase in China.There are six parts in this paper: The first part introduces the research background and significance,domestic and foreign relevant literature,as well as the writing ideas and innovations of this paper.The second part briefly describes the concept and types of stock repurchase,followed by the relevant theory of stock repurchase,which lays the theoretical foundation for subsequent case analysis.The third part introduces the process and expected impact of corporate and stock repurchase.The fourth part analyses the changes of market reaction,financial indicators and economic value added before and after stock repurchase by collecting data,and summarizes the positive and negative financial effects after stock repurchase.The fifth part is about how to improve the impact of electronic share repurchase.The sixth part is the conclusion and outlook.It summarizes the whole case,illustrates the shortcomings of this paper,and prospects the development prospects of stock repurchase.Based on the financial statements and the related literature theory,this paper summarizes the advantages and disadvantages of the share repurchase to Junsheng Electronics.On the one hand,stock repurchase optimizes the capital structure,improves financial leverage and financial flexibility,and reduces the agency cost of enterprises.It verifies the theory of financial leverage,agency cost and financial flexibility.On the other hand,due to the increase of the asset-liability ratio,the solvency of the company declines,the stock price rises slightly in the short run,while the long-term market effect is not satisfactory,the signal transmission effect is not obvious,the single payment method increases the financial risk of the company,and the reduction of the total share capital brought by the cancellation and repurchase of shares results in the loss of the interests of small and medium-sized shareholders.The conclusion of this study validates some domestic and foreign literature views,mainly reflected in the encouragement of tax avoidance effect,financial leverage effect and the impact on shareholders.However,in terms of signal transmission effect and market effect of stock repurchase,the research results are not as positive as most literature views.In view of the limitations of this study,the theoretical discussion on the stock repurchase effect still needs the joint efforts of scholars in the future.