| This thesis describes the theory and practice of stock repurchase of Chinese listed company. On the whole, it could be divided into two parts. In the first part, what mainly discussed is that the theory of stock repurchase and the necessity, possibility of stock repurchase for the listed companies in China and the problem probably existed now in the process of stock repurchase. On this basis, the author put up the core problem: how the listed companies repurchase the stocks of themselves on condition that which can meet the two aims: efficiency and fairness at the same time. In the second part, the author not only answered the problem, but also listed a series of conditions should be obeyed by the listed companies when they want to repurchase their own stocks. The author believed that the conclusions are beneficial to both the listed companies and the administrator. Chapter 1: A description of stock repurchase. What mainly discussed in this part is that the history of stock repurchase and the basic theory of stock repurchase. Basing on that the author discussed the necessity, possibility of stock repurchase of Chinese listed companies and the problems probably existed now in the process of stock repurchase. It is tested that the stockholder who sale his stock can earn 23% capital stock premium. Further more, when the stock repurchase time pre-limited is over, the price of the existing stock on the secondary market is still high 13~15% above the price when the news was noticed. In order to explain improvement, there a lot of theories were put up in western country, such as dividend or personal tax shelter theory, capital structure leverage theory, news theory, etc. In this thesis, the author first analyzes the factors affecting the net present value of the stock. On basing this, the author concluded that the real factors affecting the stock's net present value are the administrative structure, the capital structure and the policy of the listed companies.What necessary for our introducing the institution of stock repurchase to the listed companies in China is that which action can improve stockholder's rich occasionally. Now in China the listed companies repurchase their own stocks which can benefit to the stock equity structure and the company management structure as well as company quality. Moreover, stock repurchase is an ideal instrument to decrease the state-owned stock equity rate. Of course, as the other capital market instrument, we should also care for the risk during the stock repurchase, such as affecting the debtor's fundamental interest, corporation's existing and development, stockholder's rich, capital market's floating and etc.Chapter 2: The conditions of stock repurchase. According to the specialty of stock repurchase for Chinese listed companies. The author thinks that no matter what kinds of stock repurchase, a company must meet the following basic conditions: (1) having a good management, steady financial structure and abundant cash flow; (2) having legal aim for stock repurchase; (3) taking a proper arrangement for the creditor; (4) repurchasing quantities under the ceiling regulated by the authority; (5) operating with the principles of fairness and efficiency.Although some companies meet the conditions, they still should decide whether to repurchase or not, what to repurchase and when to repurchase according to the practice of the company. The repurchase for listed companies should add up to the following selective conditions: (1) be benefit to company's stock equity structure; (2) the company encounter the hostile takeover; (3) be good to the company's sustainable growth; (4) selecting time according to the company's stock price or its product is being mature phase or not.Chapter 3: Types, ways and the procedure of stock repurchase. This and the next chapter make detail explanation about the repurchase condition put forward in chapter 2. According to the motive of stock repurchase, stock repurchase can be divided into two types: conventional and strategic. The fo... |
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