Research On The Motivation And Effect Of Stock Repurchase Of Chinese Listed Company

The so-called stock repurchase refers to the behavior of listed companies to buy back a certain number of stocks issued outside the securities market at a certain price by using their own cash or borrowing from financial institutions in order to transmit positive signals to the market,reduce agency costs and optimize capital structure.The capital market of western developed countries is relatively mature,and the laws and regulations on stock repurchase are relatively complete.Such market environment and policy environment provide the soil for the development of stock repurchase.Since the 1980 s,stock repurchase has gradually become a means of capital operation and market value management for the majority of listed companies.By contrast,stock repurchase in China started late.The earliest stock repurchase event began in 1992,but since then,due to the strict restrictions of relevant policies and regulations,immature securities market and other factors,stock repurchase has been in a slow development and stagnant state,and few listed companies have implemented stock repurchase.In addition,this stage of stock repurchase has very Chinese characteristics,most of which are carried out by state-owned listed enterprises in order to achieve the reduction of state-owned shares and coordinate with the reform of non-tradable shares.In recent years,with the rapid development of China's securities market,the relevant laws and regulations of stock repurchase have gradually loosened,and stock repurchase has developed rapidly.More and more listed companies in China have begun to use stock repurchase as a means of capital operation and market value management.In 2018,the A-share market has set off an unprecedented wave of repurchase,and the number and scale of repurchase enterprises have been greatly increased.Although the practice of stock repurchase in China is gradually in line with the international practice,stock repurchase is still in the process of continuous exploration.The study on the motivation and effect of stock repurchase of Listed Companies in China can not only enrich the relevant theory of stock repurchase in China,put forward policy recommendations for the regulatory authorities,but also enable listed companies to rationally view stock repurchase in a relaxed policy environment.This paper contains six chapters.Chapter One is the introduction part,which briefly describes the research background and purpose,shows the research methods and ideas,and expounds the innovations and shortcomings of the paper;the second chapter is the literature review part,which combs and summarizes the relevant literature on the motivation and financial effects of stock repurchase at home and abroad;the third chapter is the theoretical basis part,which introduces the concept of stock review.The fourth chapter is the analysis of the current situation of stock repurchase,which mainly shows the policy changes,historical process and the data statistics of the repurchase of Listed Companies in China.The fifth chapter is the case analysis part.This chapter mainly analyses the stock repurchase of the case enterprise-Midea Group,and mainly analyses its repurchase.Motivation and the financial effect of repurchase;Chapter VI is the conclusion,suggestions and outlook of the study,which draws the corresponding conclusions and suggestions from the analysis of the previous chapter,and puts forward the outlook for future related research.The innovation of this paper lies in: first,the selected case is more typical.The Midea Group's stock repurchase of 4 billion yuan in 2018 is the largest repurchase in the A-share repurchase tide in that year.This repurchase mode is centralized bidding repurchase.In view of the past enterprise repurchase is mostly over-the-counter agreement repurchase and centralized bidding repurchase is the future development trend,so the analysis of this case is to follow-up enterprises.The choice of repurchase mode has reference significance.Secondly,after analyzing the announcement motivation of the case enterprise repurchase,this paper further analyses the hidden motivation of the non-announcement,and puts forward some research suggestions for the supervision department to refer to.The main disadvantage of this study is that the data collection is not exhaustive enough.Although the author collects relevant data of enterprises through searching database,researching annual report of enterprises and other channels,the collected data are limited to the financial information disclosed by the Midea Group.Because the author can not obtain the undisclosed internal information of the enterprise,it objectively restricts the further study of the American Group Stock Repurchase.