Case Study On The Causes And Effects Of GREE Electric’s Stock Repurchases

Expected research abroad shows that the company usually chooses stock repurchase when the stock price is underestimated,or as an alternative to cash dividends.At the same time,repurchase not only advance the stock price,but also affects the company’s corresponding financial indicators.especially in October 2018,the "Corporate Law" made a corresponding revision of the stock repurchase,and the situation of six "except",which greatly stimulated the listed company’s stock repurchase.The enthusiasm,only 812 stock repurses occurred from October 26,2018 to December 31,in just two months.In this context,the motivation and effect of China’s listed companies’ stock repurchase is important and practical.Gree electrical appliances act as a home appliance leader,launched the first share repurchase plan on April 13,2020.The paper is based on Gree Electrical Repurchase Cases.By collecting a large amount of data on the dynamic repurchase and effect of Gree Electric,it is concluded that the main cause of Gree electrical repurchase is due to its own share price is underestimated.Active signal,attract more investors;secondly,in order to motivate management and backbone employees to implement equity incentives,in order to relieve the risk of equity pledge,promote long-term health Stable development;Finally,the influence of the stock repurchase to market effect was analyzed by the event research way.