An Empirical Analysis Of Stock Repurchase In Chinese Securities Market

Stock repurchase is that listed company refers to the use of its own funds or debt, etc., buy-back the ordinary shares for treasury or cancelling. It has a stable share price, to prevent the acquisition, optimize capital structure, and reduce agency costs and the role of the reorganization of assets and so on. After years of development and improvement, share buybacks have become a mature foreign securities markets as an important tool, and very popular, and now the New York Stock Exchange, the amount of the annual stock repurchase billions of dollars are to be calculated. Stock repurchases have become a common, effective, and important capital works and the distribution of benefits means.Repurchase the securities market in full swing with a relatively developed, although through our stock repurchase nearly 20 years, but still at a very early stage. How to fully understand and take advantage of the capital stock repurchase operation and the role of the distribution of benefits is an important issue in China's securities market. Most previous studies or simply stay in the case study analysis of the extent of the events, very little empirical research, and study stays in the year 2008 data.In this paper, the latest data, by describing the research at home and abroad about the status of the stock buyback, combined with the course of development of the stock repurchase, the use of empirical regression analysis and standard-depth analysis of events listed companies in China's stock repurchases, and explore the reasons for its formation, resulting in effects and the impact of market factors and the impact on future earnings. Hope through research, not only enrich the existing theory on the stock repurchase hypothesis, but also can improve the stock repurchase policy of providing advice and learn from China's listed companies to improve the level of capital operation, more effectively and share buybacks Interest in the role of coordination structure, improve corporate governance and enrich the connotation of China's capital market will have greater theoretical and practical significance to all of us to more fully understand the financial instruments, stock repurchase of help. The empirical study found that:First, on the causes of China's stock repurchase, the paper verifies the hypothesis of international financial leverage of mature, free cash flow hypothesis and the signaling hypothesis of stock price and profitability of the signal hypothesis and the hypothesis, but also found the management incentive hypothesis because in our interpretation of the stock repurchase is applicable. Meanwhile, by using the ratio of the top five shareholders profit agency that is a major shareholder of an important reason for stock repurchases, the company easier to buy larger, while the turnover rate of accounts receivable reflected in the "equity swaps" type back share has had an impact, it is now not significant. In addition, the first demonstration, "focused on listed companies to repurchase shares of auction trading Supplementary Provisions" (later known as "Supplemental Rules") the introduction of the stock repurchase decisions have significant impact after the introduction of its stock repurchase more significantly related to equity incentive presents a new feature.Second, the market effects of stock repurchase and the influencing factors, the paper proving once again that our country has a positive market share buy-back effect, and still there is the phenomenon of buy-back of information leaked in advance. I introduced a new ownership concentration, the net asset growth, operating income, the source of funds and a series of repurchase indicators as explanatory variables, found a greater proportion of buy-back, the higher the rate of growth of net assets, the use of debt and other non-cash buyback, the higher operating income, then the stock repurchase market effects will be. The higher the degree of ownership concentration, the market effect of stock repurchase will be smaller, and found-book ratio, debt ratio, "Supplementary Regulations" and whether the announcement involves the introduction of all of the stock repurchase equity incentive market there was no significant effect effects.Third, studies of stock repurchases in the future performance of the company, the paper verify the performance of the company stock repurchase certain of future promotion effect. Also, the introduction of my new net rate of earnings, liquidity ratio, the main business income and other variables as explanatory variables and found that the greater the proportion of repurchase, net profit rate is higher, the higher the main business income, then back to purchased to enhance the company's performance after the implementation of the more; the higher price-earnings ratio, the higher the liquidity ratio, the higher the debt ratio, the repurchase of the company's performance improve after the implementation of the less; does not affect the size of the company buy back the company after the implementation of performance improvement. In addition, we also found that "additional requirement" introduced and announcements related to equity incentive, especially in the "Supplementary Regulations" after the announcement of the repurchase equity incentive involved in the performance of the company after the implementation has a very significant positive effect.