Research On The Relationship Between Stock Repurchase And Corporate Value Of A-share Listed Companies

Stock repurchase is an important tool for the capital market to regulate the total amount of equity.It refers to the company's purchase of shares of the company issued or circulated in accordance with certain procedures.It is widely used in the western capital market and is often used for interests.Stock repurchase has become one of the company's effective capital operation tools.The stock repurchase of listed companies in China started late.However,with the vigorous development of China's economy,the capital market is maturing and the stock repurchase system is constantly improving,and the global economic situation is not optimistic and affected by the bear market in the domestic securities market in recent years,the stock repurchase attitude of China's securities regulatory authorities has gradually turned into support.For example,The Four Ministries issued "Notice on Encouraging Mergers and Acquisitions,Cash Dividends and Share Repurchase of Listed Companieson" in August 2015,the provisions on stock repurchase in the "Company Law of the People's Republic of China" were amended in 2018,so the number of listed companies implementing share repurchase is increasing.According to the Cathay Pacific database,327 companies that announced stock repurchases in 2016,and 461 companies that announced stock repurchases in 2017.Domestic research on stock repurchase is increasing,but few scholars study the relationship between stock repurchase and long-term value of the company.Therefore,it is of great theoretical and practical significance to study the relationship between stock repurchase and company value through qualitative and quantitative analysis methods.Providing stock repurchase guidance for listed companies and providing investors with stock repurchase proposals is conducive to the stable development of China's capital market.In order to study the impact of stock repurchase on the value of the company under the increase of the number of stock repurchases,this paper selects the time for the four ministries to issue the "Notice" after the 2015 stock market disaster as the research starting point,according to the stock repurchase research background,and sorted out 574 sample data from August 1,2015 to July 31,2018.Firstly,the event research method is used to verify the relationship between stock repurchase and the company's short-term value change.The research results show that stock repurchase can enhance the company's short-term value,and the market value management as the repurchase purpose is better than the equity incentive plan.Simultaneously,it is found that the repurchase information is leaked in advance.Secondly,through OLS multiple regression analysis,the relationship between stock repurchase and the company's long-term market value,it is found that there is no obvious correlation between stock repurchase and the company's long-term market value.This may be because of stock market downturn,and the development of China's securities market is not mature enough,resulting in the securities market value discovery function can not be effectively played,the market value can not correctly reflect the company value;through regression analysis of stock repurchase and the company's long-term book value Relationship,found that stock repurchase has a positive effect on the company's long-term book value,and passed the significance test;then through regression analysis,it is found that the repurchase ratio has no significant effect on the company's long-term value,which may be because most of the stock repurchase objects Restricted stock Repo and repo range effect of small proportions,after the robustness test,the above conclusions were verified.;Finally,this paper puts forward suggestions from three perspectives:government,listed companies and investors.