Research Analysis Of Financial Effect Of Stock Repurchase Of Listed Companies

Stock repurchase refers to the fact that a listed company uses its own cash or financing funds to buy back shares to reduce the number of shares outstanding,to stabilize stock prices or to use stock incentives.Stock repurchase is used late in China,and it was first developed in developed countries in Europe and America.It is a basic way of capital operation.In 2005,China relaxed restrictions on stock repurchases,allowing companies to buy back tradable shares in the market.Listed companies use share repurchase to adjust stock prices or to release signals that the company has good prospects for future development.Regulating the capital structure,these behaviors are also becoming more common.In particular,from the revision of the "Company Law" last year,some restrictions on repurchase have been released.It can be seen that stock repurchases will become more standardized and perfect in the future.In the 40 years of reform and opening up,China's capital market has developed rapidly and stock repurchases have become increasingly mature.However,we have noticed that the various financial effects of the repurchase of the company's stock by listed companies are also different.Therefore,it is of great academic and practical significance to analyze the financial effects of stock repurchases of listed companies.First of all,based on many domestic and foreign literatures,this paper introduces the influence of domestic and foreign scholars on the research background,significance and related theories on share repurchase.Then it introduces the related concepts and theories of stock repurchase and the reform process of stock repurchase in China.This paper takes Shenzhen Yingtang Intelligent Control Co.,Ltd.as the research object,introduces the related concept foundation of stock repurchase,comprehensively analyzes the financial data of the company,and discusses the rationality of its repurchase.The financial effects of the purchase were analyzed in detail.Finally,summarize the problems found in the case study,and also put forward very insightful suggestions for its problems.Through the specific analysis,the paper draws the following conclusions:Stabilizing the company's stock price is the most important reason for stock repurchase;stock repurchase is good and the signal is obvious;stock repurchase will bring financial risks;stock repurchase is based on the long-term effect of raising stock price is not obvious The completion of stock repurchases was lower than expected.Through this research,we hope to strengthen the deep understanding of all aspects of stock repurchase,and promote the development of better use of capital operation for listed companies,as well as investors fully understand the repurchase of their own strength.