Research On The Motivation Of Fangda Group's B Share Repurchase And Its Impact On Stock Returns

According to the statistics of the repurchase projects of the A-share listed companies in the two cities,as of August 2018,a total of 482 listed companies had completed 953;from the perspective of the amount,the repurchased amount reached 21.675 billion yuan,with a growth rate of 57.5%.At the same time,B-share listed companies had a total of 7 repurchase events in 2018,accounting for 7.07% of the number of B-share listed companies.It can be seen that 2018 is not only an intensive period for A-share listed companies to carry out share repurchase,but also an important time for B-share listed companies to carry out share repurchase.After reviewing the theoretical basis of share repurchase and related literature at home and abroad,this paper takes Fangda Group as a case company,taking the case of two B share repurchase events in April 2018 and September 2018 as an example,using the case study method.A comprehensive analysis of the motives of China's B-share listed company Fangda Group to implement share repurchase and the market reaction after repurchase,and study whether the motives and effects of the share repurchase application in China's B-share market are special,and then The conclusion of the study.After analyzing the case company Fangda Group,this paper verifies the rationality of the two motives of maintaining the reasonable valuation of stock price and adjusting financial leverage issued in the announcement.Secondly,this paper finds that the two B share repurchase cases of Fangda Group There are also two implicit motives,one is to optimize the shareholding structure,and the other is to reduce the agency cost caused by excessive free cash flow.Finally,this paper tests the company's stock price through the event research method and finds that Fangda Group has twice B.The stock repurchase project news has the opposite effect on the stock returns of the company's B shares,indicating that in the B-share market,the share repurchase program does not always have a positive effect on the company's stock.