Listed Companies In China Share Repurchase Motivation Comparative Study

Stock repurchase is a common capital oprerating method in the western capital market, which is a way to reduce capital and adjust the equity structure of listed corporations through buying back its own stocks. As a way of equity contraction, stock repurchase involves capital structure and dividend policies of listed corporations thus it can improve their internal stock value. With the economic reform deeped in our country, the excessive proporation of stated-owned equity has become a large obstacle to further development of our stock market as well as making our listed coporate governance perfect, then state-owned stock lessening has become an important aim, under which state-owned economy quits from competitive fields in order to attain its strategic transfer. Especially in recently share separation reform periods, in order to promote the reform, China Securities Regulatory Commission allows listed corporations to repurchase circulated stocks. The corporations immediately respond to repurchase stock. Therefore, studying the repurchase motivations of listed corporations has active meaning.In this thesis, five segments are divided. In first segment, the author mainly introduces study background as well as the purpose and methods. In second segment, the author mainly introduces laws and three main style of the stock repurchase. In third segment, the author systematically summarizes the stock repurchase motivations, then points out the limitations on previous study.In fourth segment, three kinds of comparisions on stock repurchase motivations have been made, namely domestic and abroad, uncirculated and circulated, announced and hidden by management. Firstly, based on a systematically analyze the existing 34 repurchase cases, the repurchase motivations have been compared between the domestic and abroad corporations, and to find out the possible causes leeding to those variances. Secondly, based on a systematically analyze the existing 34 repurchase cases, the repurchase motivations have been compared between the uncirculated stock and circulated stock, and to find out the possible causes leeding to those variances. Lastly, based on a systematically analyze the existing 34 repurchase cases, the repurchase motivations have been compared between the announced and hidden by management, and to find out the possible causes leeding to those variances. The author chooses the Shanghai Jiahua corporation unciculated stock repurchase and the Handan Iron corporation circulated stock repurchase, deely analyzing the stock repurchase motivations between announced and hidden by the management.In fifth segment, the author summarizes the whole paper and formulates the meaning as well as research prospect in future.