Motivation And Financial Effect Of Joyson Electronic Stock Repurchase

Stock repurchase is not only an important dividend policy of listed companies,but also an important means to improve the corporate governance structure and optimize the capital structure of enterprises.The company may cancel the repurchased shares after the completion of the share repurchasing.The repurchased shares can also be reserved as "treasury shares",which are no longer issued shares,and do not participate in the calculation and distribution of earnings per share,and will be used for other purposes in the future.As a method to optimize the ownership structure of Companies in western countries,stock repurchase has been widely used in the mature capital market in the 1980 s.The function of dividend substitution and capital structure optimization of stock repurchase has been widely confirmed.Since it was introduced into China in the 1990 s,stock repurchase cases of listed companies have been emerging,and as a means of improving financial performance and optimizing capital structure of listed companies have been applied.This paper takes Junsheng electronics as an example,using the method of case study,using the method of literature research,event research and financial comparative analysis to explore the motivation and effect of stock buyback of listed companies.After combing the relevant literature and theories,this paper makes a separate and in-depth analysis of the case of Junsheng electronic stock buyback,focusing on the motivation of Junsheng electronic stock buyback and the financial effect of the market effect of stock buyback on the company,and draws conclusions from the relevant financial indicators and data.In terms of motivation,this paper mainly studies from four aspects: stabilizing stock price,adjusting financial leverage,equity incentive and improving financial flexibility.In terms of the financial effect of share buyback,through the analysis of the market effect of Junsheng electronic share buyback,it is found that the share price can rise in the short term,but it can not guarantee the long-term stable growth of the company’s share price.The company should pay attention to improving its operating performance,and promote the rise of the company’s share price by raising its own value.Through the analysis of the financial indicators of Junsheng electronic stock buyback,we find that the positive financial effects of stock buyback are: improving the operating performance of the company,and improving the financial flexibility of the company.Negative financial effects include the reduction of the company’s debt paying ability and the failure to optimize the capital structure.Finally,the paper puts forward some suggestions for the stock repurchase in the capital market of our country,and looks forward to the future of stock repurchase.