The Effect Of Share Repurchase Of Listed Companies

Stock repurchase is to use the daily management of funds of listed companies. Or in other way of financing, it is based on debt financing which is at a particular price to buy back the corresponding proportion of the company’s outstanding common stock, and in the meaning time will buy the common stock cancellation in accordance with the law, so as to achieve the aim of the action or adjust the equity structure. The China securities regulatory commission in 2005, the official launch about “the listed companies buy back shares the social public management approach(trial) "is the first rules of share repurchase in China, the use of share repurchase of listed companies in our country since the capital operation means to systematic rational can depend on. With the development of capital market and securities market, more and more listed companies recognize the stock repurchase can effectively bring benefits for the company, which started trying to develop a plan of stock repurchase. Therefore, further exploration and research of stock repurchase theory and grope for solve the problem of share repurchase practice, to promote the development of China’s capital market and securities market and innovation, solve the problem of the market value of listed company is undervalued has the reality guiding sense.Paper firstly introduces the origin of stock repurchase, laid the foundation background and research significance, with a review of the stock repurchases related research at home and abroad, summarizes the shortcomings of existing studies. Then the related concepts and theories of stock repurchase, and combined with relevant theory to the current situation of the stock repurchase of listed companies of our country are analyzed in detail. Later, with the examples of boatel, the application of relevant theoretical analysis of stock repurchases the company implement the impact of stock repurchases. Through the company stock repurchase case before and after the financial position and operating results of the comparison and analysis, summed up the financial effect of stock repurchase and market effect.Thesis uses financial indicators analysis and event study method, the selection of boatel shares a representative stock repurchase plan enterprise case study, from the Angle of the two financial effect and market effect, selecting a number of financial index and market index, systematically studied the effect of stock repurchase in China stock market, the following conclusions:(1) the stock repurchase short-term can improve the interests of shareholders and investors. At the time of share repurchase decisions, boatel is to put the stock repurchase and the company’s dividend policy together, finally use stock repurchase method instead of the cash dividend. Standing in the perspective of shareholders and investors, even if there is no real cash dividend, but because of rising stock prices also will have to replace revenue, but also can need not pay individual income tax.(2) the stock repurchase has some disadvantages. To damage the interests of creditors, misleading investors, caused the market operation order disorder, using insider information to speculation and manipulation using financial statements indexes such as illegal behavior.(3) stock repurchases can increase the value of the company, improve the capital structure and ownership structure, the company’s capital structure will be perfected. Policy Suggestions:(1) to intensify information disclosure, protect the interests of small and medium investors;(2) increasing the company stock repurchase scope of implementation, for the government supervision and management;(3) strengthen the supervision of stock repurchase in the economic aspect;(4) improve the stock repurchase of laws and regulations.