Listed Companies Treasury Stock System

The treasury share regulations of listed companies are about the acquirement, settlement and usage of treasury shares. Treasury share appeared firstly in U.S.A., and then it was introduced to many developed countries. So far, more and more countries with comparable healthy security market has accepted treasury share. In china, the newly amended corporate law has permits the temporary holding of treasury share. Besides theoretical repurchase act, this transformation gives us many fresh subjects to study up on. These subjects include the acquirement, settlement and usage of treasury shares, the effects on stock market and the empirical study of repurchase act. The author wants to do something constructive to improve the regulations of treasury share in china.In this paper, starting with the fundament of treasury share hypotheses, by the compare of regulations in U.S.A., Germany, Japan and Taiwan province of china on treasury share, by the analysis and summarization of the practice of repurchase in Chinese securities market, the author advances several suggestions to enhance our treasury share regulations.This paper consists of four parts:PartⅠ: this part presents the definition of treasury share and its legal characters. Then it introduces several important hypotheses, such as Information Signaling Hypothesis, Free Cash-Flow Hypothesis, Dividend or Personal Tax Hypothesis, Optimal Leverage Ratio Hypothesis, Management Incentive Hypothesis, Takeover Deterrence Hypothesis on treasury share. Finally, the author shows some risks brought with treasury share.PartⅡ: through the compare and analyses of regulations in U.S.A., Germany, Japan and Taiwan province of china on treasury share, this part intents to give some reference to the reform of treasury share system in china. PartⅢ: this part summarizes the cases of repurchase in china in recent years, and points out many important problems which need to be settled. The empirical study in this part can serve as the evidences for the last part.PartⅣ: the author analyzes the regulations of treasury share system in china, and then, by reference of other countries or areas, she puts forward some suggestions.