Research On Motivation And Effect Of Bull Group’s Stock Repurchase

Stock repurchase refers to the behavior of listed companies to buy their own shares from the securities market in a certain way by using their own cash or issuing bonds,and is a common capital operation tool for listed companies.With the gradual improvement of various systems in China’s securities market,the advantages of stock repurchase have emerged,and the state has relaxed conditions to encourage more listed companies to buy back shares in order to stabilize the securities market.Under this background,there are more and more cases of stock repurchase in China stock market,which provides samples for scholars to conduct case studies.The research object of this paper is the stock repurchase event of Bull Group in2022.Through the comparative study of various financial data of Bull Group,it is found that the reasons for the stock repurchase of Bull Group include the following: increasing stock price,implementing equity incentive,reducing idle funds and improving earnings per share.Bull Group tries to send a signal to investors that the company’s share price is seriously undervalued through stock repurchase,attracting the attention of market investors,stabilizing and raising the share price,and improving the overall market value of the enterprise.Judging from the short-term market effect of Bull Group’s share repurchase,the repurchase has controlled the continuous downward trend of the stock to a certain extent,which shows that Bull Group’s share repurchase has indeed played a role in stabilizing the stock price in the short term.However,in the long run,the stock price of Bull Group has not been continuously improved,and there has been a callback during the repurchase period,and the stock price has been continuously improved after the repurchase is completed.In terms of financial effects,after analyzing the relevant financial indicators,this paper holds that stock repurchase does not affect the good solvency and profitability of enterprises,but can improve the operating ability of enterprises in the short term,and does not affect the ownership structure.By comparing the comprehensive financial benefit index EVA before and after the stock repurchase of Bull Group,it is found that the stock repurchase has improved the long-term value of Bull Group.After an in-depth analysis of the motivation and effect of the stock repurchase case of Bull Group in 2022,this paper holds that enterprises should improve the timing ability of stock repurchase,investors should adhere to the concept of value investment,and market regulators should pay attention to the diversification of the motivation of stock repurchase.