A Study On The Motivation And Effect Of Stock Repurchase Of Hao Xiang You Healthy Food Co.,Ltd

Stock repurchase refers to the behavior of a listed company to repurchase part of the company’s outstanding shares in a specific way according to the plan.Because stock repurchase has the functions of increasing stock price,reducing agency costs,optimizing capital structure,and strengthening control to prevent mergers and acquisitions,it is currently used very frequently in mature western capital markets.my country’s stock repurchase policy has also changed over time.Looking back on history,the process of my country’s stock repurchase system can be roughly divided into four stages.The first stage is the lack of regulations(before 1994).The second stage is the gradual normative stage(1994-2005).The third stage is the encouragement stage(2005-2015).The fourth stage is a further breakthrough stage(from 2015 to the present),which clearly proposes to encourage listed companies to implement stock repurchase,but imposes relevant restrictions on the use of stock repurchase for insider trading and benefit transfer.Nowadays,due to the encouragement of policies,the share repurchase events in the domestic capital market have surged,and the motivation for implementing the repurchase has become more and more complicated.Explore the real motivation behind the share repurchase of listed companies and what will happen to the company after the repurchase The impact becomes more theoretical and practical.This article selects Haoxiangni Health Food Co.,Ltd.,a leading company in the jujube industry,as a case study company.Its “Hao Repurchase” plan released in 2020 has attracted the attention of the market.This article attempts to explore the motivation and economic consequences of its repurchase.The main research methods used are literature research method,case analysis method,factor analysis method and event research method.Through the verification and analysis of the announcement motivation and theoretical motivation,it is concluded that the main reasons for this repurchase are as follows: First,to help the company implement strategic transformation.Second,increase earnings per share.Third,reduce the company’s agency costs.Fourth,for the opportunistic motivation of managers,that is,to cooperate with shareholders to reduce their holdings.Then I made an analysis of the economic consequences of the stock repurchase implemented by Haoxiangni,and concluded that the impact of this repurchase in terms of financial effects is not positive and significant.Capital structure has little effect.In terms of market effect,the accumulated excess returns during the announcement window for share repurchase showed an upward trend,resulting in a short-term positive market reaction.The level of repurchase did not play a long-term positive role.Finally,through the overall analysis of the motivation and effect of the repurchase of shares in Haoxiangni,this thesis concludes that the opportunistic color of the managers of Haoxiangni ’s repurchase is extremely obvious,and the main reason for the implementation of the repurchase is to cooperate with shareholders to reduce their holdings.Cash out.Finally,after the conclusions are drawn,recommendations are given from three different perspectives.First,in terms of companies,it is necessary to avoid opportunistic share repurchase by managers,and to fundamentally enhance the competitiveness of companies and maximize corporate value;second,in terms of investors,investors should strengthen their investment knowledge.Learn to avoid irrational investment behaviors;third,in terms of regulators,regulations on corporate stock repurchase information disclosure should be improved to protect the interests of small and medium shareholders.