Research On The Motivation And Financial Effect Of Xinhu Zhongbao Co. Share Repurchase

The share repurchase originated in the United States and developed strongly in the western capital market.It started late in China and lags behind.However,with the promotion of the share-trading reform,China has introduced more and more legal documents to promote the standardization and maturity of share repurchase.In recent years,more and more listed companies have begun to try to use share repurchase,and China's share repurchase has experienced unprecedented explosive growth.Previous research results have been difficult to effectively draw on the ever-changing securities market.Therefore,it is of theoretical and practical significance to study and analyze the current share repurchase motivation and financial effects.The article mainly uses the case study method to conduct research.Firstly,it expounds the background of share repurchase,and sorts out the relevant research results of domestic and foreign share repurchase,and finds that it is necessary to conduct case study of share repurchase in the period of repurchase.Secondly,it introduces the summary of share repurchase and Related theories,and based on this,a case study.Taking Xinhu Zhongbao as a case company,first explore the real motives of its share repurchase,and verify the other motivation hypotheses one by one,and then analyze the financial effects generated from the impact on market value and financial performance.The impact and impact on thecapital structure are studied.Finally,through the summary of the case analysis,the case of the repurchase of Xinhu Zhongbao shares is proposed for the share repurchase of listed companies in China.The article draws the following conclusions through research: First,the real motivation for the repurchase of Xinhu Zhongbao is to solve the problem of large shareholders' liquidity and strengthen control.Second,share repurchase has a boost effect on stock prices in the short term;The financial effect of share repurchase is more obvious during the transition period of repurchase implementation,but it is relatively insignificant in the long run.The article hopes that through the above research,it can promote the correct understanding and understanding of share repurchase,which can provide a reference for Chinese listed companies to use share repurchase to better promote enterprise development.