Research On Stock Repurchase Motivation From The Perspective Of Signaling And Opportunism ——Taking ASD As An Example

The behavior of stock repurchase first appeared in western countries,but it developed later in China.With the gradual development of the stock repurchase system,the scale and quantity of the stock repurchase behavior in the market of our country has gradually increased,but at the same time,a series of irregular repurchase behavior also appears,which has aroused the attention of the supervisory department.Therefore,the motivation of stock repurchase behavior has gradually become the focus of academic and investor debate,there are two main points of view: the motivation of signal transmission and opportunism.The repurchase behavior with opportunism motivation will not only disturb the normal operation of the securities market,but also bring huge losses to investors.In order to help the supervisors and investors better identify the opportunist motives of the stock repurchase behavior of the listed companies,so as to maintain the orderly conduct of the stock exchange market and the interests of investors,this paper,on the basis of previous studies,combined with the case study of the Stock Repurchase of ASD Company,this paper constructs an analytical framework from the perspective of signaling and Opportunism: to identify the motivations of the stock repurchase behavior of ASD based on three different aspects: financial status,event behavior and market behavior.Among them,the financial situation,including the analysis of the case of the company’s financial situation,solvency,operating conditions and profitability,found that the stock repurchase scheme of ASD is not financially feasible;Concerned about the significant events before and after the announcement of the stock repurchase plan,such as the equity incentive and the situation of the stock pledge,and found that there was some behavior of the company to the detriment of the interests of the investors;Found that the stock was not undervalued.Finally,through the analysis of the market effect and the financial effect of the stock repurchase behavior,it further confirms the opportunism motive of the company.According to the above analysis process,it is concluded that there is opportunism motivation in the behavior of the stock buyback of ASD,and it is also concluded that the small and medium-sized investors are not easy to identify the opportunism motivation in the short term,and the stock repurchase with opportunism motive both violates the minority shareholders’ rights and harms the development of the companyIn view of the above analysis conclusion,the author puts forward some suggestions about stock repurchase for our country’s supervision department and minority shareholders,which will be helpful for the further improvement of our country’s relevant policies and the prevention of listed companies’ opportunistic repurchase behavior,and for the small and medium-sized investors to identify the listed companies to buy back the stock of the opportunistic motivation to reduce investment risk.