Analysis On Share Repurchase Motivation And Economic Consequences Of The Listed Company In China

Stock repurchase is the behavior of a listed company from the capital market to buy back their outstanding shares, in order to achieve and adjust the equity structure.As a way of capital operation, share repurchase is beneficial to optimization of company capital structure, is advantageous to company’s dividend distribution policy, it can increase the company value, too. Compared with western developed countries, share repurchase of listed companies in China starts late.2005years ago, due to the special structure of capital market in our country, the implementation of the listed company stock repurchase cases is less. At this time the main targets of Chinese stock repurchase are non-tradable shares, and stock repurchase motivations mainly are the reduction of state-owned shares or in the service of equity division reform. In2005with the repurchase of listed companies the social public shares management approach (trial)"the promulgation and implementation of the listed companies in China stock repurchase cases gradually increased. Especially since the financial crisis, some listed companies out of stock are seriously undervalued and market factors such as price-to-book ratio is low, announce stock repurchase implementation of announcement successively, stock repurchases become the focus of capital market. So exploring stock repurchase motivations and economic consequences for the development of capital market in China has practical significance and theoretical value.This paper is divided into five parts. The first part simply introduces the research background, research significance and the domestic and foreign scholars research of stock repurchase. In second part, on the basis of carding the related literature at home and abroad, elaborated the stock repurchase system financial motivation theory, signaling theory and principal-agent theory, and for the repurchase of motivation and economic consequences research laid the theoretical basis. The third part of share repurchase of listed companies in China the past data on the basis of sorting, sums up the characteristics of the share repurchase of listed companies in China from the legal person share to the public on repurchase object float transition, from the repurchase agreement on buybacks, orientation repurchase market centralized price bidding in change of the pattern, and on the repurchase motivations from the specification and the optimization of ownership structure to improve now stock value and the equity incentive and so on market factors change. Through the analysis of the stock repurchase cases have been reported in China also for later related Suggestions on the development of Chinese stock repurchase established facts. The fourth part is the main part of the thesis, selected the Joincare Pharmaceutical Group’s share repurchase as a typical case analysis. On the one hand, the Joincare Pharmaceutical Group to the implementation of the stock repurchase motivations for people’s health analysis and verification, on the other hand, the Joincare Pharmaceutical Group after the introduction of stock repurchase economic consequences for people’s health were analyzed. By Joincare Pharmaceutical Group the implementation of the stock repurchase motivations for people’s health and economic consequences of contrast analysis, obtained cannot hope to through share repurchase of listed companies improve the value of the company, enhance the level of earnings and share price change. The last part summarizes the problem of share repurchase of listed companies in our country, and for the development of share repurchase of listed companies in China put forward relevant Suggestions.