Research On Stock Repurchase Of The Supor Ltd Company

Stock repurchase is of great significance to the companies in the western courtries,which is also referring to the behavior of buying back the company’s shares issued in the public.In 1980 s,it was one of the most effective anti-takeover measures which had been widely used to improve capital structure and temperature of company stock price.In the course of China’s economic development,China’s capital market has been maturing step by step.Share repurchase in China’s capital market has gradually been transformed into a common way for listed companies to keep market share prices stable.In the western capital market,share repurchase has been playing an important role as a common tool which can not be ignored.The most obvious is the ability to directly reduce the tradable shares in the secondary market,strengthen the notion of major shareholders.Therefore,increasing the research on stock repurchase,deepening the understanding of listed companies and secondary market investors on stock repurchase,stock repurchase will be better used.Compared with western countries,China’s economic starting point is low and the total volume is small,so the emergence and application of stock repurchase in the stock market is in a later stage.Limited by national policies and regulations,the early share buyback in China’s capital market almost stagnated.Few listed companies dared to buy back shares in the secondary market.Since the outbreak of the trade war between China and the USA in 2018,the Shanghai composite index has fallen from 3,587 points to 2,440 points,thanks to share buybacks that can stabilize stock prices.At this time,the listed companies that dare to use realmoney to buy back their own shares in the secondary market also sent a clear signal to the majority of investors that the value of the company is undervalued.This article selects the Supor Ltd Company as the research object.Through the previous analysis of Supor stock repurchase case,this part summarizes the conclusion of Supor stock repurchase,and provides relevant enlightenment for Supor Ltd Company stock repurchase after.The conclusions are as follows: Supor’s motivation to implement share repurchase is not only to raise the share price,but also to improve the earnings per share through share repurchase by stock-based incentive compensation,so as to ensure the control of the enterprise.This stock repurchase has brought good financial and market effects to the company in the long run.