The Impact Of Financing Constraints On The Shareholders' Wealth After The Share Repurchase

For the share repurchase, the domestic and foreign scholars have a positive attitude, it is a good news to investors in the transmission, which they interpret as a signal of undervaluation for repurchasing firms, on the other hand, also passed out to enhance the value of the company’s information. At the same time, it has a significant impact of financing constraints on corporate behavior, when participating in the share repurchase company facing financing constraints, we need to consider whether the stock repurchase can be expected to enhance it. As an important means of capital operation and dividend policy, stock repurchase is conducive to the formation of the listing Corporation and the investors "win-win" situation, but the lever effect of stock repurchase and bring the degree of financing constraints impact on shareholder wealth of the repurchase, have important practical significance for the research of our country after the reform of non tradable shares tradable share repurchase.In this paper during 2007-2013 in Shanghai and Shenzhen A shares listed on the open market repurchase of shares and mainland companies as the research object, the method of event study and multiple regression analysis are combined, to study the cumulative abnormal return in the window period, by comparing the high financing constraint firms, and the company’s short-term low financing constraint firms and the market reaction to the long-term and firm performance, and on this basis to value a year cumulative abnormal return and the repurchase of shares of Sample Firms after Tobin Q as the explained variables for regression analysis, to determine the financing constraints on the repurchase of shares after the company shareholder wealth effect is significant. At the same time, the introduction of the repurchase rate as the variable effects of financing constraints on shareholder wealth after the open market repurchase, to explore how the impact of the company’s short-term and long-term value. The study found that:(1) after the implementation of the repurchase of shares,the market reaction of stock price are not significant positive effect;(2) to implement the repurchase of shares of companies, financing constraints for the window period of cumulative excess returns have significant negative impact;(3) the actual repurchase rate for financing constraints and repurchase shareholder wealth effects of a certain offset, so its moderating effect is not significant.