| With the rapid development of China’s securities market,the securities market provides financing channels for listed companies in China.Growing enterprises can obtain more funds to help further development of the company,while mature enterprises can effectively use idle funds.China’s securities market is not mature,the stock price is not stable,the interests of investors in the process of market investment is vulnerable to damage.Investors generally hold a wait-and-see attitude towards companies with large price fluctuations,so listed companies will face the situation of not being able to raise money when they need to raise funds.As a result,from a macro perspective,China’s economic development will be hindered and the development speed will be reduced.However,share repurchase injects new blood into the market,provides a new channel to stabilize stock prices,and eliminates investors’ concerns.Investors are more willing to invest,and enterprises can better and faster finance for enterprise development.However,there are many restrictions on the buyback system in China before,and it is difficult for listed companies to implement buyback,so share buyback cannot play its role.The new Company Law revises the share repurchase,which also increases the upper limit of the shareholding of listed companies after the repurchase,prolongs the shareholding period,and provides more possibilities for enterprises to implement share repurchase.Restrictions on share repurchase have been reduced,and listed companies have joined the ranks of share repurchase based on corporate strategic objectives.The scale of share repurchase in China’s capital market has been expanding,and the strength of share repurchase has been increasing.The revision of company law has brought many opportunities to listed companies.This paper adopts the method of case study to analyze the financial indicators and market reaction of L Group after share repurchase,explore whether the implementation of share repurchase meets the strategic motivation of the enterprise,find the problems in the process of share repurchase and propose scientific and reasonable measures.This paper first describes the development of the current capital market,and introduces the research significance of this paper,and then analyzes and evaluates the research papers related to stock repurchase at home and abroad,and then summarizes the research ideas the research methods applied in each research stage.The second part introduces the concepts related to stock repurchase,and expounds the types and methods of stock repurchase,and summarizes the theories related to the financial effect of stock repurchase.From the third part,L Group as the main case first introduced the buyback process,analyzes the motivation of L Group to implement share buyback from multiple perspectives;Then the fourth part analyzes the financial effects of L group share repurchase,observing the changes of L group’s financial indicators after share repurchase,proposing the positive and negative effects of share repurchase on L Group,and making a comprehensive evaluation of the financial indicators;After that,it puts forward the deficiencies in the process of share repurchase of L Group and puts forward suggestions.Listed companies need to treat share repurchase rationally according to their own situation.The last part is the research conclusion that share repurchase can adjust financial indicators,optimize capital structure and boost stock price.However,if share repurchase cannot be carried out scientifically and reasonably,it will also cause some negative effects.Listed companies need to treat share repurchase rationally according to their own situation. |
