Study On The Financial Effects Of China's Listed Corporation Stock Repurchase

Stock repurchase originated in the United States in the 1970 s.It refers to the behavior of listed companies using their own funds or borrowed funds to purchase their issued shares.It is an important way of capital operation.China's capital market started relatively late.Because of the imperfection of the relevant system of share repurchase,there were few cases of share repurchase in the early stage of Listed Companies in China,mainly for the purpose of coordinating with the reform of the non-tradable shares of state-owned enterprises.With the gradual clarity of supervisors' attitude towards share repurchase and the continuous promulgation and implementation of relevant policies and regulations,share repurchase in China has gradually embarked on the road of standardization and marketization,and the scale and frequency of share repurchase have also shown explosive growth.In this context,the study on the motivation and impact of share repurchase of Listed Companies in China can not only provide experience for listed companies to make full use of the tool of share repurchase,but also provide reference for regulators to improve the repurchase system and regulations.The purpose of this paper is mainly two.First,through theoretical analysis and case studies,to explore the real motivations of share repurchase of China's listed companies.Second,through the changes in the actual financial performance of listed companies before and after the share repurchase,and the market reaction after share repurchase analysis,to study the impact of share repurchase on the performance of listed companies.Based on the above research purposes,this article firstly summarizes and evaluates the research results of domestic and foreign share repurchase,and sorts out the relevant basic theories of share repurchase.Then,combines the theory and data to analyze the development status quo of share repurchase in China.Based on this,Markor Furnishings was selected as a typical case to analyze the impact of the share repurchase implemented on the company's performance,to explore the motives of the company's share repurchase,and propose targeted policy recommendations accordingly.The content of this article is made of seven parts.The first chapter is an introduction.It mainly introduces the research background and research purposes of this paper,and determines the research ideas and research methods adopted in this paper.The second chapter is a literature review.This paper mainly summarizes the relevant research from three aspects: repurchase motivation,financial performance of share repurchase and market effect of repurchase.The third chapter is theoretical analysis.First,the concept,type and repurchase method of share repurchase are introduced.Then it summarizes the current relatively mature theoretical hypothesis of share repurchase,and summarizes the motives of share repurchase.Finally,the financial and market effects of share repurchases are discussed separately.The fourth chapter is the analysis of the status quo of China's share repurchase.Firstly,according to the overall situation of share repurchase of Listed Companies in China from 2013 to 2017,this paper makes an overall analysis from four perspectives: the quantity of repurchase,the industry distribution,the source of funds and the degree of completion.Then,the sample of repurchase cases with market value management as the main purpose was selected to conduct an in-depth analysis of financial performance and market effects.It was found that,in general,share repurchase can have positive financial impact and market effect on listed companies in the short term.The fifth chapter is a brief introduction of the case of Markor Furnishings Share Repurchase.Mainly introduces the general situation of Markor Furnishings,the background and process of stock repurchase.The sixth chapter is the performance impact of share repurchase.This chapter explores the motivations for the implementation of share repurchase in Markor Furnishings,and deeply analyzes the impact of this repurchase on the performance of Markor Furnishings.Through the research,it is found that the implementation of share repurchase by Markor Furnishings can enhance shareholders' wealth,improve capital structure,increase market value and improve surplus distribution.The seventh chapter is conclusions and recommendations.This paper mainly summarizes and evaluates the cases,and puts forward some suggestions on the existing problems of share repurchase based on the conclusions of the case studies.The expected contributions of this paper mainly include: First,the current research on the impact of share repurchase performance mainly adopts the method of empirical research,and lacks specific analysis of the latest repurchase cases.This paper selects the share repurchase carried out by Markor Furnishings in early 2018 as a typical case,and conducts systematic research and analysis on the impact of repurchase motivation and repurchase performance.The research conclusion is more time-sensitive and targeted.Secondly,from the two aspects of financial performance and market effect,this paper analyses the changes of financial indicators and excess return volatility of listed companies that repurchase shares based on market value management and other managerial motivations from 2013 to 2017,and its conclusions are of great significance for reference.