The Impact Of Share Buyback Of Listed Company On The Financial Effect

This paper put the domestic popular means of capital operation of stock repurchase of the last few years as research object and choose the famous Baogsteel shares repurchase examples for illustrating.The repurchase of shares means listed companies using their own funds or borrowing funds,repurchase the issued shares of themselves in the stock market,then log off them.share repurchase was origin from America and has important influence on America capital market.A large number of foreign scholars study on the repurchase of shares,think that share repurchase can improve company ownership structure,enhance the company's share price,to prevent the hostile takeover and so on.China's capital market development and expansion needs learn foreign excellent management concepts and advanced technology.The share repurchase has received more and more attention of the listed companies after it was introduced into market as financial revolution.This paper describes the impact of the share repurchase on the financial effect of the listing Corporation.The full text is divided into five chapters.The first chapter introduces the research background,research significance,writing methods and the relevant research results at home and abroad.The second chapter introduce the theory of stock repurchase,such as the signaling hypothesis,the hypothesis of capital structure optimization and financial flexibility hypothesis,equity incentive hypothesis,wealth transfer hypothesis,to prevent hostile takeovers hypothesis,excess cash flow hypothesis,a comprehensive description of various hypotheses,to deepen understanding of stock repurchase,it also introduces four methods of stock repurchase,often used in the capital market.the third chapter,analysis of the status quo and causes of the financial effect of the share repurchase,the focus on the introduction and evaluation of related financial effect,and the financial effect of both sides of the story,explain the reason of the production of this effect.the fourth chapter,analysis the case of Baosteel repurchase,it introduce the repurchase of Baosteel's financial situation changes in three period such as prior to the period of repurchase,the period of repurchase and the time of after buy back,from the financial effect on the company and the market perspective to analyze effects of share repurchase,repurchase shares of Baoshan Iron and steel group the positive financial effect include:reversing the stock is undervalued situation,enhance the performance of the company,pay a positive effect on the capital structure and ownership structure and reduce the chances of management abuse of cash,to improve the efficiency in the use of funds,stock repurchase instead of cash dividend to give shareholders capital gains,the share repurchase in corporate strategy also plays an important role.Negative financial effects of Baosteel Group,including financial effect last time is not long,repurchase makes the financial pressure on the company to increase,and had a negative impact on the interests of small shareholders;chapter five,relative suggestions,understanding a lot of the shortcomings and insufficiency of knowledge through analysis of Baosteel repurchase shares.and put forward the relevant measures and targeting suggestions.