Analasis Of Superstar Thchnology Share Repurchase Ubder The Background Of The New Company Law

On October 26,2018,the Standing Committee of the National People’s Congress made a “three changes” and “one improvement” of share repurchase in Article 142 of the New Company Law.Since then,China’s share repurchase has surged in terms of quantity and amount.At the same time,the newly added use of repurchased shares for convertible bonds has attracted wide attention from all circles.114 listed companies including Superstar Technology stated that the repurchased shares will be used for the convertible bonds,but as of December 31,2021,only 5 listed companies have successfully used it,indicating that there are certain problems in the application process.Under the background of the new “Company Law”,the relevant research on share repurchase has certain theoretical and practical significance.This paper reviews the literature,makes statistics on the current situation of share repurchase in my country,and selects Superstar Technology from five companies that have successfully used the new purpose of share repurchase according to objective conditions such as the completion of share repurchase and the time limit for issuing convertible bonds.As research target.Using the comparative analysis method,event study method and hypothesis analysis method,the following three aspects are studied on the case of Superstar Technology’s use of repurchased shares to convert convertible bonds: first,the reasons for the repurchase are analyzed;Then,market effect and long-term financial effect are analyzed;finally,it studies the new effect of non-financial indicators produced by the new use of shares in convertible bonds,and analyzes it’s success.The following conclusions are drawn:Firstly,Superstar Technology has no hidden repurchase motives,in addition to promoting a reasonable return of the stock price,the repurchase is also attracted by the revision of the new “Company Law”;Secondly,There is a positive short-term market effect,and the stock price increase effect of the new use of convertible bonds under the new“Company Law” is more significant than that of the old law;Thirdly,the new use of convertible bonds can have a certain financial effect on indicators such as earnings per share,with a contribution rate of about 8%;Finally,Superstar Technology used the new use of convertible bonds for share repurchase proposed by the new “Company Law”,resulting in old the non-financial indicator effect that can’t be produced by the company law is to avoid harming the interests of creditors and reduce the dilution of the original shareholder’s equity,cleverly using time matching,making full use of the repurchase period,and good fundamentals to enhance the stock price and promote forced redemption.Accordingly,from the perspectives of regulatory authorities,listed companies and investors,corresponding inspirations and suggestions are put forward in order to provide reference for the smooth implementation of the new policy.