MN Company Financial Effect Analysis Of Stock Repurchase

Stock repurchase refers to the behavior of listed companies recovering their stocks from the stock market for the purpose of stabilizing stock prices and equity incentives,and reducing the number of shares outstanding.It is an important dividend policy and an important means to improve th e corporate governance structure and optimize the capital structure.The rise of Western developed capital markets in the 1980s.It has become an effective market regulation tool and has been widely used in mature capital markets.Different from the developed capitalist countries in the West,in the early securities market of China,the stock repurchases of listed companies received many restrictions.With the deepening of the reform of the socialist economic system,the laws and regulations of China's securities market have gradually improved,and gradually restricted the restrictions on the stock repurchase system.In 2016,the overall stock market was in a downturn,and the fuse mechanism was just triggered soon after it was introduced.China's securities market has set off a wave of stock repurchases.This paper is divided into four writing sections.The first part is the introduction,introducing the research background,the meaning of the topic and the ideas and methods.This paper reviews the motivations of domestic and foreign listed companies' stock repurchase and the theoretical research status of their financial effects,and lists the main framework of this paper.The second chapter defines the relevant concepts and defines many classic theoretical foundations for stock repurchases.It is mainly the theoretical basis of the operation mode,motivation and financial effects of stock repurchase.The third chapter is the case introduction and motivation analysis.It introduces the process of MN's stock repurchase,financial background,stock price performance over the years.And combined with the industry environment and the company's operating conditions and other factors to analyze the real motivation of this stock repurchase;the fourth chapter is the financial effect analysis part,which belongs to the core content of this paper,introduces the solvency index and profit of the company's repurchase period Capability indicators and growth capacity indicators,and use the "wealth effect basic model" and "capital asset pricing model" to comprehensively analyze the positive effects of stock repurchase.Then,it analyzes the changes in financial indicators such as interest coverage ratio and cash flow liability ratio in the repurchase event of MN,and discusses the financial negative effects such as financial risks and payment risks arising from repurchase.And the relevant rationality suggestions are proposed;the fifth chapter is the conclusion,summarizing the research results,including the motivation of MN company stock repurchase,the positive and negative financial effects and th e solution to the problems.I hope that through this research,I plan to buy back later.The management of listed companies provides meager business decision-making guidelines.