A Case Study Of Motivation And Effect Of Share Repurchase Of Yili Group

The so-called share repurchase, refers to the use of listed companies operating the daily business income,or through debt financing to a relatively certain price to buy a certain number of enterprises in the circulation of shares. There are many uses of repurchase shares, including the cancellation of the law, in order to achieve the purpose of optimizing the capital structure or capital reduction, equity incentives and anti-malicious acquisition.Dairy industry related to people's health and health, has been widespread concern, especially Sanlu milk powder "melamine" incident, it is the dairy industry in China pushed to the cusp. 2015 is destined to be an unforgettable year of China's stock market, starting from the second half, China's stock market experienced another round of "winter", the specific performance of the company's share price fell sharply and then experienced a long sluggish,this time a lot of listed companies There are more motivations for stock repurchase. Yili Group is also a member of the wave of listed companies during the stock market crash. Yili Group as China's dairy industry in the leading enterprises in China's many enterprises enjoy a high reputation and visibility. Therefore, the selection of Yili Group as a case study of the object has a certain practical significance.This paper mainly uses the case study method and selects the Yili Group as the object of the case study, and makes a comprehensive study on the motivations and the corresponding effects of the shares of the Yili Group during the stock market crash in 2015. In the analysis of the repurchase motive part of the use of the cash flow discount model and other research methods in turn on the repurchase possible motive analysis, the results of the study is the Yili Group's repurchase motive is not just the official claim that in order to stimulate the stock price promotion , As well as restrictions on managers over-investment, increase the concentration of equity and other more subtle purpose. The analysis of the effect caused by the repurchase is divided into the analysis of the financial effect and the market effect. The part mainly uses the comparative analysis method,selects the group which is repurchase and repurchases in the same period and the beauty of Yili, The use of the incident earnings research method to calculate the stock during the extraordinary rate of return and the repurchase before and after the financial indicators of the change,compared with the stock market repurchase on their short-term changes in stock prices and long-term financial situation, the results of the study Is in the stock market during the period of repurchase,in a short period of time on the stock price did not significantly enhance the role, but in a long period of time, the financial situation has improved significantly.Finally, how listed companies in the existing and the environment to better implement the share repurchase, give full play to the role of repurchase given the recommendations. This paper provides a new way of thinking and supporting the evaluation of listed companies' motives and effects of stock repurchase during the stock market crash.