Analysis Of The Motivation And Effect Of Stock Repurchase In Listed Companies

Stock repurchase first appeared in the capital markets of Western countries in the 1950 s.Today,the market for stock repurchase in Western countries is very mature,and its laws and regulations are also very complete.For my country,the development of stock repurchase in the early 21 st century was considered to be standardized,and then some stock repurchase events began to appear one after another.In recent years,the state has gradually realized the importance of stock repurchase,and has gradually loosened its control over it in terms of policy.Therefore,the number of companies that have been repurchasing has gradually increased,and has gradually adopted stock repurchase as a tool for capital operation in my country.In 2018,the stock repurchase reached a historical maximum,that is,the "2018 A-share repurchase tide",and in 2018,the state also passed the new "Company Law",adding a treasury stock system,and it can be carried out in the original.There are three new types of stock repurchase.Under the background of strong support from the state,the number of companies that choose to carry out share repurchase has gradually increased,and the motivation for share repurchase has also increased.Therefore,at this stage,it is of reference significance for the development of the stock market to study and analyze the motives of stock repurchase and the effects it can bring.This article takes Xinhu Zhongbao as an example to analyze,mainly analyzes the motivation of Xinhu Zhongbao’s repurchase and what effects this repurchase has brought to Xinhu Zhongbao.This paper firstly analyzes the background of stock repurchase and the research significance brought by the study of stock repurchase.Secondly,it briefly discusses the related concepts and theories of stock repurchase.Then,it introduces Xinhu Zhongbao and the motivation and process of the repurchase.In terms of motivation,this article is divided into the direct motivation of the announcement issued by the company and the potential motivation obtained by analyzing the relevant financial data.Next,I focus on analyzing the two effects brought about by Xinhu Zhongbao’s repurchase.The financial effect is based on the analysis of the financial data released by Xinhu Zhongbao.It is concluded that the stock repurchase does not necessarily bring the company There is a positive financial effect;the market effect is an analysis using the event research method.By establishing a model and model regression,it is concluded that the stock repurchase has brought a short-term positive impact to Xinhu Zhongbao,but it did not last in the long-term.Finally,based on the above analysis,the results of Xinhu Zhongbao’s repurchase are summarized and some suggestions are given.Through an in-depth analysis of the Xinhu Zhongbao case of stock repurchase based on the background of the new company law,it is concluded that equity incentives have gradually become one of the main reasons for stock repurchase in recent years.The financial effect is two-way,and the market effect is not necessarily sustainable.Therefore,through the study and analysis of this case,the companies that conduct stock reviews in the follow-up can use stock repurchase correctly and obtain more benefits from it,and at the same time,the stock repurchase market can be better developed.