| Stock repurchase first appeared in the United States,and then prevailed in western developed countries.In contrast,China started late,the earliest stock repurchase event began in 1992,and then the stock repurchase of listed companies in China was strictly restricted.It was not until 2005 that the provisions of the Company Law on stock repurchase were amended that the stock repurchase began to develop.In2018,the CSRC further relaxed the scope of stock repurchase,so that the number of companies repurchase and the value of repurchase refreshed a new height in the Chinese market,marking a new stage in the development of stock repurchase in China.This paper adopts a case study approach and selects the share buybacks conducted by Xiaomi Group several times from 2019 to 2020 as the research object.Through a detailed exploration of the whole process of Xiaomi Group’s stock repurchases,we analyze the motivations for Xiaomi to conduct large-scale repurchases and the performance they bring.The paper begins with a literature review,introduction and related concepts to lay the foundation for the case study later on.The theoretical analysis is then used to guide the analysis of the motivation and performance of Xiaomi Group’s share buybacks,and to analyze the reasons why the share buybacks did not play a significant role in Xiaomi Group’s nearly "declining" share price.From the case of Xiaomi Group stock repurchase,the following conclusions are drawn: first,Xiaomi Group has not achieved the goal of raising stock prices.Second,investors are at an information disadvantage relative to the company’s insiders,investors will make full use of the information resources they have,and will no longer be led by the company from many angles.But more rational view of the company’s decisions,more rational stock investment.Third,Xiaomi Group stock repurchase,will protect the rights and interests of controlling shareholders,is not conducive to the protection of minority shareholders’ rights and interests. |
