Motivation And Effect Analysis Of Stock Repurchase In Shaanxi Coal Industry

Under the influence of the continuous improvement of domestic market economy and the gradual completion of mechanism,stock repurchase has been widely used by enterprises in recent years.In September 2018,the China Securities Regulatory Commission published the draft amendment to the company law of the People's Republic of China,which focuses on improving the supporting system of stock repurchase,allowing repurchased shares to be held for a long time,and encouraging enterprises to buy back corresponding shares.The number and amount of share buybacks announced by public companies in 2018 reached a record high.Among them,the repurchase amount announced by shaanxi coal industry co.,ltd.ranked first in the history of a-shares in that year.Therefore,this paper selects shaanxi coal industry as the research object,with typical case value.By referring to domestic and foreign research literature,this paper adopts literature analysis method,case analysis method,comparative analysis method and event analysis method to analyze the buyback motivation and buyback effect of shaanxi coal industry.The motivation of buyback is mainly analyzed from the aspects of industry environment,development and market reaction of the enterprise,hoping to obtain the real motivation of share buyback of shaanxi coal industry.Effect analysis studies from two aspects of market effect and financial effect.Market effect is to use event analysis method to calculate and analyze the excess accumulated return before and after the announcement of share repurchase.Financial effect is to compare the financial index before and after stock repurchase and analyze its change.The conclusions drawn in this paper are as follows:(1)the shanxi coal stock repurchase is driven by a variety of reason,through to the shanxi coal p/e ratio,price-to-book ratio and cash flow status index analysis,the conclusion is undervalued and capital utilization rate is not high,the main reason for its stock repurchase shares and capital is directed toward improving the utilization rate;(2)after the formal announcement of the share repurchase,the share price of shaanxi coal industry quickly showed an upward trend,and after that,there was an obvious positive excess return and excess accumulated return,which showed a good market effect brought by the share repurchase.(3)analyze the data of cash flow,earnings per share,financial leverage and financial performance before and after stock repurchase,which shows that the short-term financial effect of stock repurchase is obvious.