Study On The Motivation And Financial Effect Caused By Stock Repurchase Of YL Group

Stock repurchase is a listed company for a stable share price, equity incentive purposes, the use of company cash or financing the recovery of funds shares, reducing the number of shares outstanding shares of the company’s behavior. It originated in the western developed capitalist countries, the rise in the 1980s. In Western developed capitalist countries, the stock repurchase is considered an important tool for the company’s capital. And the Western developed capitalist countries is different, due to the stock market in China started late, late emergence of the stock repurchase, and combined with China’s national conditions and have the features. Early stock market listed company "dominance" situation "with the shares of different weights," abound, and even then the stock repurchase law adopted strict restrictions attitude. Early buyback of equity division reform closely linked. With the further deepening of reform and opening up, China’s securities market becomes more mature, the government gradually to the "service-oriented" government change from "managed" the government gradually liberalized restrictions on stock repurchases, the law on share buybacks regulations have also been introduced. June 2005, "the listed company to buy back public shares management (implementation)" issued; 2008 "listed company focused on the Supplementary Provisions auction trading repurchase shares" issued; December 2013 "to further strengthen the capital market of small and medium to protect investors’ legitimate rights and interests of work "to further regulate the specific issues stock repurchase.2015, four ministries issued "to encourage mergers and acquisitions of listed companies, cash dividends and share repurchase notice" to encourage share buybacks this market behavior; the beginning of 2016, fusing mechanism triggered emergency market behavior, causing more people to share repurchases attention.Taking stock repurchase as the research object to repurchase motivation, the financial effect as the starting point, use case analysis, this stock repurchase capital works carried out a detailed analysis. After reading the article, based on the large number of documents, first we discuss the concepts and theories underlying stock repurchase, and then as the axis of time and legal analysis of the development history of China’s stock repurchase. Hand article collected Listed Corporations declared stock repurchase announcement data, the number of share repurchases this stage, modalities, incentives and other aspects were summarized, come share repurchase development status in China. This paper selected YL Group, as a sample case, its stock repurchase true motives multifaceted analysis, through calculated and compared before and after the stock repurchase financial statement data, obtained the financial effect on the share repurchase YL Group. This paper aims to study the stock repurchase motivation and financial effects can make more scholars learn more about the share buyback this capital works, and provide guidance to the meager operating decisions management of listed companies.The paper is organized as follows:The first chapter mainly discusses share buybacks background, significance, content and a brief description of the article research ideas, etc; the second chapter with a literature review based stock repurchase theory; the third stock repurchase the development process and the status quo; the fourth chapter case motivation analysis, we selected YL Group as a case sample, scale, two aspects of the operating results of the Group before YL were introduced, and move its stock repurchase due from multiple analyzes; the fifth chapter of the financial effects of the share buyback from YL Group stock, financial indicators and cash flow three aspects were analyzed and summarized the results of YL Group share repurchases made and problems; sixth chapter Conclusion and outlook, this chapter analyzes the previous binding studies concluded that some problems and our stock repurchase stage presence made a number of recommendations and their vision for the future stock repurchases.