| In June 2005,with the China Securities Regulatory Commission promulgating the "Administrative Measures for the Repurchase of Public Shares by Listed Companies(Trial)",the domestic open market stock repurchase was officially launched.Subsequently,during the period of several major stock disasters,more and more listed companies began to use stock repurchases to deal with the crisis.Can stock repurchases that have high hopes from companies and regulators really help companies stabilize stock prices? What are the main motivations for companies when choosing stock repurchases? Can it help companies improve their own development in other ways? At present,the research on stock repurchases mostly focuses on the analysis of the effect of the stock repurchase announcement,but there is less research on the stock repurchase event itself.In two aspects,it analyzes and judges the main reasons for the company’s stock repurchase,and puts forward targeted suggestions based on Based on the stock repurchase event implemented by Weifu Gawker in 2015,based on signal transmission theory,principal-agent theory,free cash flow hypothesis,this paper analyzes the motivation of listed companies’ stock repurchases and the financial effects of repurchase,and studies the main motivations of listed companies to repurchase shares,and the financial effects they produce.This article takes the stock repurchase event implemented by Weifu Hi-Tech in 2015 as the research object,based on the theory of signal transmission theory,principal-agent theory,free cash flow hypothesis,etc.,using case study method,literature research method and event research method,The motives,schemes and financial effects of stock repurchases of listed companies were analyzed,and the main motives of the case companies’ stock repurchases were studied,as well as their financial effects.This paper concludes from the study of the share buyback incident of Vivo Gawker:(1)The main motive for the implementation of the share buyback by Vivo Gawker is to stabilize the company’s share price.(2)This share buyback has a short-term boost to The share price of Vev Co.(3)The effect of stock repurchase to improve the capital structure and efficiency of capital use of Weifer Gawker is not obvious.This article takes Weifu Hi-Tech as the research object and is divided into five parts: Chapter 1 is the introduction,which mainly introduces the research background and significance,literature review,research ideas and research methods,and the basic framework of the paper;Chapter 2 is an overview of related theories,Mainly introduces the basic concept of stock repurchase and its related motivations and financial effects of the theory;Chapter III is the introduction of case events,mainly introduces the development process of the case company Weifu Hi-Tech,the relevant background before stock repurchase and The process of stock repurchase implementation;Chapter 4 is a case analysis of stock repurchase,to analyze the motives of Weifu Hi-tech to implement stock repurchase,and verify the repurchase from the perspective of stock repurchase program and the financial effects caused The main motivation and effect.Chapter 5 is the conclusion and suggestion of the case.Based on the analysis above,it draws relevant conclusions and gives specific suggestions.This article takes Weifu Hi-Tech as the research object and is divided into five parts: Chapter 1 is the introduction,which mainly introduces the research background and significance,literature review,research ideas and research methods,and the basic framework of the paper;Chapter 2 is an overview of related theories This article mainly introduces the basics of stock repurchases.This paper draws the following conclusions by studying the stock repurchase events of Weifu Hi-Tech:(1)The main motivation for Weifu Hi-Tech to implement stock repurchases is to stabilize the company’s stock price.(2)This share repurchase has a short-term boost effect on Weifu Hi-Tech’s stock price.(3)The effect of stock repurchase to improve Weifu Hi-Tech’s capital structure and capital use efficiency is not obvious.Through the case study of Weifu HiTech’s stock repurchase event,this article provides experience and reference for the effective implementation of stock repurchase of other listed companies,and also helps the majority of investors in the market to further understand the role and characteristics of stock repurchase. |
