Research On The Effect Of Share Repurchase Market Of Listed Companies In China

In 2018,the overall trend of China’s stock market was sluggish,with the share prices of some listed companies approaching the stop position line,hitting the warning line and even facing the risk of delisting.In order to improve the share price of the company and highlight the fair value of the company,listed companies have implemented share buybacks one after another,making the number of companies that have implemented share buybacks and the total amount of share buybacks in 2018 both reach a record,namely,"A share buyback wave in 2018".Data show that in 2018,A total of 785 a-share companies carried out share buybacks,accounting for 22% of the number of a-share listed companies.The amount of buybacks was up to 53.4 billion yuan,an increase of575% over the previous year.Under such a large-scale wave of share repurchase,whether the share price of listed companies has been correspondingly improved,whether the capital market has been significantly affected,and what factors are related to the repurchase effect?An in-depth study on the issues related to the buyback tide in the a-share market in 2018 is of positive significance to the implementation of share buyback by listed companies in China.Therefore,this paper uses the sample data of share buyback in the a-share market in 2018 to study the market effect of share buyback.By studying domestic and foreign literature,this paper expounds the concepts,methods,motivations and other related concepts of stock repurchase,and forms a theoretical overview of stock repurchase.Then it reviews the development history of stock repurchase in China and analyzes the current situation.In the empirical research design,the existence of market effect is studied by using the event research method,use multiple linear regression method to determine which factors affect the market response of stock repurchase,and finally use factor analysis method to quantify the enterprise value,in order to explore the role of enterprise value in stock repurchase.Based on the research results,this paper analyzes the possible problems in the stock repurchase behavior of listed companies in China,puts forward corresponding Suggestions,and prospects the stock market in China.