Study On The Motivation And Effect Of Stock Repurchase In Jian Min Group

Stock repurchase is a kind of capital operation method in which listed companies use the internal funds of enterprises or buy back the shares of the company through debt financing,and reduce the company's circulation shares in the open market.Most of the early development of stock repurchase in China serves the reform of shareholding division.With the development of market economy in China and international standards,the motivation and ways of stock repurchase are more and more diversified.However,compared with the mature stock repurchase market in the West,there is still a lack of experience in the design and operation of stock repurchase in China.Therefore,it is of great significance to deeply explore the motivation and effect of stock repurchase,to enrich the research of stock repurchase market in China,and to provide reference for listed companies that adopt stock repurchase.After the enterprise carries on the stock repurchase,will generally cancel the repurchase stock cancellation or as Treasury stock.After the repurchase of Jian Min Group shares,the purchased shares are used for equity incentive,and the trigger conditions of repurchase are combined with the business performance of enterprises,which has a certain representation.Based on the relevant theory of stock repurchase,this paper combs and summarizes the two stock repurchase events of Jian min group.Taking the motivation of the implementation of stock repurchase by Jian Min Group as the starting point,the paper analyzes the effects of stock repurchase in depth.This paper makes a comprehensive analysis of the motivation of the stock repurchase of Jian min Group from four aspects of stock price,earnings per share,cash flow and company's operating performance.On this basis,this paper probes into the effect of stock repurchase of Jian min group.In the analysis of stock price,sort out the closing price before and after the stock repurchase,observe the influence of stock repurchase from before and after repurchase,and reuse the event research method to analyze the market effect of stock repurchase announcement on the stock price on a specific date.In the analysis of earnings per share and cash flow,the influence of stock repurchase in the short term is explored by comparing the changes of annual related indexes before and after stock repurchase.This paper analyzes the change of business performance before and after stock repurchase from two angles of financial leverage level and business performance appraisal index that achieves the trigger condition of stock repurchase.Finally,the wealth effect model is used to analyze the wealth effect of Jian min Group after two stock buybacks.This study found that Jian min group through the share repurchase stability and enhance the company's share price,access to a good market response.Boost earnings per share and increase corporate value.After the share buyback did not lead to a lack of cash flow,the company still has sufficient capacity to pay.Stock repurchase and equity incentive combination,and with the dynamic linkage of business performance,improve the business performance of enterprises,financial leverage level and profitability has been improved.After two stock buybacks,Jian Min Group has brought about a positive wealth effect,increasing the wealth of shareholders.Finally,it puts forward some suggestions to strengthen information disclosure,encourage enterprises to make full use of stock repurchase and pay attention to protecting the interests of minority shareholders.