Analysis On The Financial Effect Of Share Repurchase Of Longjing Environmental Protection

Share repurchase generally refers to the behavior of listed companies in the secondary circulation market interface,by means of offer repurchase,centralized bidding and other means,to re-purchase the company’s shares,and thereby reduce the number of ordinary shares they have issued.Because share repurchase plays a positive role in the development of the company,such as enhancing the value of the company’s shares and improving its capital structure,share repurchase is favored by more and more managers of listed companies in the domestic market and used more and more frequently.Therefore,the analysis and research on the successful share repurchase cases of listed companies has an important impact on the development of domestic share repurchase.This paper will start from the development background of share repurchase,briefly describe the significance of the study of share repurchase,at the same time,around the relevant research data of experts and scholars,collate and summarize,further analysis,for this study to lay a solid theoretical foundation.Then this paper focuses on the concept of share repurchase,repurchase effect and other relevant research theories,to discuss,determine the core content of this paper.Finally,taking Longjing environmental protection co.,ltd.as an example,this research was carried out.When analyzing the share repurchase case,this paper firstly expounds the background of share repurchase and its motivation,and then analyzes the influence,from four aspects of equity structure,shareholder value,financial index and financial risk.It is found that in terms of equity structure,share repurchase improves the financial leverage coefficient and optimizes the financial leverage of the company.In terms of the shareholder value of the company,share repurchas makes the share price increase in a short term.In terms of the impact on financial indicators,share repurchase has improved the long-term solvency and growth ability of the company,but has not improved the short-term solvency and operation ability,or even had a negative impact.At the same time,share repurchase also creates financial risks and infringes the interests of creditors to some extent.Through the above research,this paper hopes to help listed companies to establish a more reasonable and systematic cognition of share repurchase,so as to lay a good theoretical foundation for the application of share repurchase in domestic listed enterprises to play a positive role.