Research On The Motivation And Performance Of Gree Electric’s Stock Repurchase

Due to the rapid development of China’s market economy and the increasing perfection of China’s capital market laws,the number of listed companies is also increasing.Due to the outbreak of COVID-19,the Shanghai Composite Index saw an unreasonable decline.Many good blue chips have been killed by mistakes.Many companies have chosen to repurchase their own shares through their own capital or through financing.Although in theory,listed companies can reduce the number of outstanding shares through stock repurchase,thereby increasing the net asset profit per share,thereby increasing the market value of the enterprise,but in practical application,whether it can really effectively increase the market value of the enterprise remains to be discussed.In addition,share repurchase will also indirectly affect the financial status of enterprises,and have a significant impact on the asset-liability ratio,operating ability and development ability of enterprises.Therefore,it is of great significance to study the actual influence of stock repurchase on enterprises.which will help For enterprise managers and market investors to further understand stock repurchase,and to provide valuable reference for the future stock repurchase of listed companies.Gree Electric appliances,one of China’s leading companies in the home appliance industry,is the quintessential blue-chip company on the Shanghai Stock Exchange.Gree Electric in Zhuhai announced its first repurchase plan on April 13,2020,and plans to repurchase shares in the secondary market.The second repurchase plan was announced on the evening of March 13.And the third share repurchase was carried out on May 27,2021.The company will repurchase shares in an amount of 7.5-15 billion yuan and use it for employee stock ownership and stock incentives.The buyback is the largest in the history of Gree Electric Appliances,and it is also the first stock repurchase conducted by Gree Electric Appliances.As a leading enterprise in the home appliance industry,Gree’s research on its stock repurchase is very meaningful.After summarizing the research contents of domestic and foreign scholars on stock repurchase,this thesis lists Zhuhai Gree Electric Appliances Co,Ltd.as the research object of this thesis.First,it briefly expounds its corporate profile and the process of stock repurchase;Then enter the subject part of this thesis,Analyze the real motivation of Gree Electric Appliances stock buyback;Then use the event study method to study the realization of gree Electric Appliances stock buyback after the event formed by the market economy effect;Then the financial performance analysis method is used to analyze the corporate capital structure and financial risk of Gree and the share repurchase has a negative impact on the financial performance of Gree Electric Company.The change of the wealth of the company’s shareholders,and finally the analysis of the research conclusions and enlightenment.