Research On The Implementation Effect Of Share Repurchase Of GL Appliances

This mode of capital operation is widely used in our A-share market.The listed company wants to stabilize the stock price of the listed company,reduce free cash flow and improve the business performance by repurchasing the common shares in circulation,and use the repurchased shares to carry out equity incentive and improve the long-term performance of the company.However,not all share repurchase of listed companies can achieve the effect of stabilizing stock price and improving performance,and there are many cases of share repurchase failure.Therefore,the research on the implementation effect of share repurchase of listed companies can enrich the case study of share repurchase,and the research conclusion can provide suggestions for listed companies.This thesis takes GL Company,the giant of white household goods industry,as the research object,and conducts an in-depth study on the implementation effect of its share repurchase.On the basis of previous literature research,relying on signal transmission,principal-agent,financial performance and other theoretical basis to carry out research.In the part of motivation analysis,the analysis is carried out from the aspects of stabilizing stock price,improving earnings per share,reducing free cash flow and optimizing capital structure.The implementation effect of share repurchase of GL company is studied from two dimensions of market effect and financial performance.The market effect was analyzed with CAR value by event study method,and the financial performance was systematically analyzed with factor analysis,financial index analysis and EVA value.The results show that the motivation of share repurchase in GL company is diversified.The second phase of share repurchase has a positive effect on corporate financial performance and market effect,but this positive effect is not sustainable,and the first and third phase of share repurchase has little positive effect on financial performance and market effect.Based on the research conclusions,the thesis puts forward relevant enlightenment: listed companies should correctly view the economic effects brought by share repurchase,prudently formulate buyback plans,and pay attention to their own operating conditions.Investors should also rationally view share repurchase.The research conclusion of this thesis can well explain the effect of share repurchase of GL company,which has important reference value for other listed companies and investors.