Comparative Study On Share Repurchase By Listed Companies Between China And US

Stock repurchase originated in US,accompany with the development of US stock market.In stock repurchase,Company using its own funds or debt financing to buy back outstanding stocks from shareholders.In US, Share repurchase rise in the 1950s',when relevant laws offset the abandon of stock repurchase before that time.In1970s',stagflation spread in US, Stock repurchase became a instead way of distribute cash dividend. With the capital market development and policy changes, the size of share repurchase became more and more large. when New Century comes, Stock repurchase present innovative features, especially the way of repurchase stocks. Beside the traditional methods:fixed-price, Dutch auction, Private treaty and the wide range of open market repurchase, there began to come derivative methods, like put options, forward contracts, ASR(accelerated share repurchase)and SSR(structured share repurchase).The motivation of stock repurchase also shows diverse feature. In the thesis we study US share repurchases based on its features.In our country, Share repurchase come out later, the size of repurchase are much smaller than US. Meanwhile, China's securities market has a history of split share structure problem, Case of successfully repurchase corporation in china shows that the way of repurchase also has a big gap with US. On June 16th,2005, SEC issued the buy back the public shares of listed companies procedures. It means that public shares repurchase will be in the way and the development of China's stock repurchase has entered a new century. share repurchase could be used to boost stock prices,the requirements of alternative bonus, incentives, etc. We could expected, with the healthy development of securities market and regulations continuous improvement, share buybacks scale will boost up and the ways will be innovated. improving, and share repurchase will play a more active role on China's capital market development and the governance of listed companies. Since share repurchase was not popular in our country, In the thesis we study share repurchase feature of our country based on repurchase cases.