Analysis On The Motivation And Financial And Market Effect Of Stock Repurchase Of Listed Company Of Automobile Industry In China

Share repurchasing refers to the behavior of a listed company using its own funds or debt financing to repurchase its own issued shares.In the western mature capital market,share repurchase is widely used as a means of capital operation,and foreign scholars have also conducted in-depth research on it.However,Chinese capital market was established relatively late,and the development of share repurchases was relatively slow.The motivation of early stock repurchase practices were often singular.Domestic scholars’ researches on share repurchases was mostly based on the specific policy background and economic environment.In recent years,there have been more and more listed companies implementing share repurchases in China,and the motivations for repurchases have also become more concealed and diversified,and the effects of repurchases are also different.In the automobile manufacturing industry,with the slowdown of Chinese economic growth,the rise of residents’ car ownership and the gradual decline of preferential policies for automobile purchases,the growth rate of automobile production and sales has slowed down significantly,and the industry has entered a new trend of slow development.The rise in raw material prices and labor costs,and the cross-border participation of various types of capital have intensified industry competition,which has also compressed the profits of the automobile manufacturing industry,and the whole industry is facing severe challenges.As a capital operation tool,share repurchase,when used properly,is conducive to raising the company’s stock price,optimizing the company’s capital structure,and enhancing the company’s financial flexibility.Therefore,an in-depth analysis of the motivations and effects of the stock repurchase of listed companies in the automotive manufacturing industry at this stage not only helps investors and listed companies to rationally view share repurchases,but also helps enrich theoretical research and promote the orderly development of the capital market..This article is mainly divided into seven parts.The first chapter is an introduction,which mainly introduces the research background and significance of this article,and briefly introduces the research methods and research ideas adopted by the article,the possible contributions and shortcomings of the article.The second chapter is a literature review.This chapter provides an overview of domestic and foreign research results on the motivation and effects of share repurchases.The third chapter is the theoretical foundation,which mainly introduces the concept,method,motivation,role and influence of share repurchase.The fourth chapter is the current situation of Chinese automobile manufacturing stock repurchase.This chapter first introduces the development status of the automobile manufacturing industry,and then the number of companies that have implemented share repurchase in the automobile manufacturing industry and the A-share industry over the years,the method of repurchase,the motivation of the repurchase and the performance of the company’s stock price after the repurchase.A comparative analysis was carried out in each aspect,and the current characteristics of the share repurchase of China’s automobile manufacturing industry were summarized.The fifth chapter is the case introduction.This chapter gives a brief introduction to the basic situation of the case company,reviews the background of its share repurchase,and reproduces its repurchase process.The sixth chapter is the main part of the article.It mainly digs into the motivation of the case company’s repurchase,and analyzes the financial and market effects of its share repurchase.The seventh chapter is the research conclusions and suggestions,summarizes the conclusions of the article,and proposes improvement suggestions from different angles of the supervisory layer,listed companies,investors,etc.There are two main contributions of this article.First of all,most previous studies have focused on the statistical analysis of the share repurchase characteristics of all A-share listed companies in China,and this article collects the number of repurchases of listed companies in the automobile manufacturing industry,the repurchase methods adopted,and the motivation of the purchase and the performance of the company’s stock price after the repurchase,and compare it with the A-share industry,to find out its similarities and differences,and put forward targeted suggestions based on the differences.Secondly,the case company Joyson Electronics’ repurchase methods and repurchase motives are all typical.At the current stage,studying the motives for the share repurchase of typical companies and the financial and market effects of repurchase can guide other enterprises in the same industry.In addition,by studying whether there are hidden motives for their share repurchases and what their hidden motives are,we can not only help investors to view stock repurchases rationally,but also provide a useful reference for regulators to better guide the development of share repurchases.