Research On Motivation And Effect Of The Share Repurchase Of Easyhome

In recent years,China’s securities market management system and share repurchase system have been continuously improved,and the securities market has gradually matured and standardized,against this background,share repurchases have shown a trend of normalization.The reason why share buybacks are widely adopted by the majority of listed companies is because of their positive effects.Not only can share buybacks adjust capital structure and financial indicators,but they can also send positive signals to the outside world,raise investors’ expectations and enhance corporate value.The study of share buyback cases can not only enrich the relevant research on share buybacks in China from a theoretical perspective,but also provide experience reference for listed companies to implement share buybacks from a practical perspective.Firstly,this paper collates the established research results of scholars on stock repurchase from two perspectives of stock repurchase motivation and stock repurchase effect,and also collates the related concepts and theories to lay the theoretical foundation of this paper.Next,a brief introduction of the basic situation of Easyhome Company is given,while the scheme,history and results of this stock buyback are organized;then,the motivation of Surprise Home’s equity incentive is verified from the announcement motivation first,and then the signaling,free cash flow,capital structure and dividend replacement motivation are analyzed from the perspective of potential motivation.Then,the financial effects of Easyhome stock buyback are analyzed comprehensively by comparing the changes of industry position before and after Easyhome stock buyback and Easyhome financial indicators through factor analysis.In addition,three aspects of the stock repurchase announcement before,during and after the announcement were started to analyze its stock price changes,and in turn analyzed its announcement effect,and finally concluded the market effect of Easyhome stock repurchase.Finally,the conclusions and insights of this paper are drawn from the summary of the analysis of Easyhome.The study found that the motivation of Easyhome stock buyback includes the announcement motivation of equity incentive and three potential motivations of signaling,capital structure optimization and dividend replacement,but the motivation of signaling and dividend replacement is not significant;the market effect of Easyhome stock buyback shows that it can boost the stock price in the short term and generate significant positive excess return,but the long term effect is not obvious;the financial effect of Easyhome The analysis of the financial effects of the stock buyback shows that the stock buyback can improve the profitability and operating capacity of the company in the short term,but it will also take up a lot of capital and reduce the debt servicing capacity.Overall,the financial effect of share repurchases on Easyhome will not last for a long time.By analyzing the stock repurchase of Easyhome,this paper concludes that although stock repurchase by enterprises will have certain positive effects on enterprises,it is not without risks and damages,and provides reference for other listed companies involved in the wave of stock repurchase to prompt them to conduct stock repurchase in a more reasonable and prudent manner,so as to promote the stable development of stock repurchase in China.