| China’s stock market ushered in a turning point in 2005.It is also a turning point in share repurchase in 2005.In this year,China began to carry out non-tradable shares reform.Under this significant background,the state has successively promulgated a number of policies and regulations on share repurchase.The release of these policies and regulations marks China’s ushered in genuine share repurchase,but this does not seem to evoke the enthusiasm of listed companies for share repurchase.After that,the state promulgated additional regulations on centralized bidding,and once again,it took a shot in the back to buy a listed company.In particular,with the revision of the company law in 2018,the number and amount of stock repurchases reached a record high,and a large number of companies began to repurchase shares.Listed companies usually carry out capital operation and value distribution through stock repurchases.Scholars’ research on share repurchase has gradually expanded from the initial market effect to influencing factors and economic consequences.However,most of the previous studies have been explained from the perspective of traditional finance,and often overlook some of the visions that appear in the market.The introduction of behavioral finance has explained the existence of financial visions in the capital market,which has caused more and more people to abandon the limitations of traditional finance,pay attention to the behavior of investors in the market,and study the impact of investor behavior on the entire market.Therefore,this paper mainly takes the case of China’s listed companies to announce the stock repurchase plan from 2016 to 2018.First,it examines the market effect of the share repurchase announcement,and secondly,based on the behavioral finance perspective,to explore the influence of investor’s emotional sentiment sensitivity on the market effect of listed companies’ share repurchase plans.Finally,we will further explore whether there are differences in the impact of investor sentiment sensitivity on the performance of the share repurchase market for companies holding different repurchase purposes.The specific research process is as follows: First,we selected four single source indicators representing investor sentiment to construct a comprehensive investor sentiment index,and calculated the emotional sensitivity of each company;Secondly,we calculated the cumulative excess return rate CARrepresenting the market reaction of stock repurchase announcements;Finally,we established a regression analysis of the regression model of investor sentiment sensitivity Sent and cumulative excess return rate CAR.This paper has three main results.First,the announcement of share repurchase of listed companies in China can produce a positive market effect in the short term,and there are differences in market effects arising from different repurchase purposes.Second,There is an emotionally driven role in the effects of share repurchase announcements.The lower the investor’s emotional sensitivity,the more the value of the company is undervalued before the repurchase announcement,so the market performance after the share repurchase announcement is better;Third,in terms of share repurchase purposes,the sensitivity of corporate investors who seek to repurchase shares with the purpose of raising equity value has a greater impact on the market effect of share repurchase announcements. |
