Research On The Stock Repurchase Of Fuchunjiang Environmental Thermoelectric Company

The new company law in 2018 clarified the legal status of "back-up" share repurchases and further relaxed restrictions on share repurchases.The promotion of the policy and the downturn in the stock market in recent years have stimulated the enthusiasm of my country’s listed companies for share repurchase.However,due to the late development of my country’s capital market and few related practices,listed companies have a certain one-sided understanding of the capital tool of "back-up" share repurchase.Therefore,research on "back-up" share repurchase can help Enterprises have a comprehensive understanding of the repurchase,so as to make better use of this tool.This article takes the two buybacks that Fuchun Environmental Protection Company conducted from the end of 2018 to the end of 2020 as the research object.First,it analyzes the reasons for the implementation of the buybacks,and then uses the comparative analysis method,event research method,Tobin’s Q value This paper studies the impact of the repurchase of the protection disk on the company,and analyzes and summarizes the successful experience and insufficiency of the repurchase of the protection disk of Fuchun ring in combination with the full text.The study found that the motives of Fuchun Environmental Protection’s repurchase are not only to stabilize the stock price and increase earnings per share as disclosed in the announcement,but also to optimize the capital structure,reduce agency costs,maintain financial flexibility,and reduce shareholders’ tax burden and other hidden motives.After the completion of the repurchase,the market value of Fuchun Environmental Protection Company has returned,the capital structure has been optimized,and the wealth and investment value of shareholders have increased.But at the same time,the company’s solvency declines,its financial risks and financing costs increase,its ability to continue as a going concern and its creditors’ rights and interests are damaged.Summarized and found that the successful experience of Fuchun Environmental Protection Company’s repurchase in support of the market includes the timing of repurchase,the method of repurchase and the scale of repurchase,and the shortcomings are that the repurchase interval is too short,the lack of a reasonable repurchase plan,and the ignorance of debt levels and debts.Financing costs.Based on the impact and evaluation of the Fuchun Environmental Protection Company’s repurchase,the enlightenment at the government level and the company level is drawn.The inspiration from the government level includes standardizing the pricing of "back-up" share repurchase,strengthening the supervision of information disclosure,and improving the creditor’s interest protection system;the company-level inspiration includes correctly understanding the effectiveness of the stock-backing repurchase and formulating a reasonable repurchase plan.,stabilize the debt level and financing structure.