The Research On The Financial Effect And Motivation Of Share Repurchase Of Guoyuan Securities Company

Share repurchase is a common capital operation that originated in Western capital markets.Compared to Western countries,China’s share repurchase started late,fundamentally thin,slow development,and because of the differences in politics,economy and law between China and the West,it makes the stock repurchase in China have distinct characteristics of "Chinese characteristics",and the financial effect and motive of stock repurchase of listed companies in China are unique.Therefore,the study of the financial effect and motivation of stock repurchase of listed companies in China not only helps enterprises to make full use of the capital operation of share repurchase to enhance the value of enterprises,but also help the government regulators have more in-depth understanding of share repurchase,Timely follow up the relevant regulatory areas to maintain the stability of the capital market.In this paper,through the case study method,the financial effect of the repurchase of Guoyuan Securities Company and the motive of the implementation of the share repurchase are deeply researched,and the problems and revelation found in the case study are promoted in order to find out the General issues and policy recommendations.Firstly,it introduces the research background and the significance of the research and the theory of repurchase at home and abroad,and provides the theoretical clues and basis for the research of this paper.Secondly,it introduces the basic situation of Guoyuan Securities Company and the process of share repurchase.Thirdly,through the study of the financial effect of the repurchase of Guoyuan Securities Company,it was found that Guoyuan Securities Company had a positive market reaction at the time of the announcement of the share repurchase plan,resulting in the rapid increase in the stock price.Of the process,the overall rise in stock prices over the same period of deep evidence,compared with the same industry securities companies,in the face of the stock market turmoil caused by systemic risk,Guoyuan Securities Company stock repurchase generated positive financial effect Limited,mainly played a role in stabilizing the share price,but the outflow of funds for share repurchase increased theshort-term debt service pressure,resulting in short-term solvency decline in the negative financial effect.The motives for the repurchase of Guoyuan Securities Company are mainly divided into external motives and internal motives.External motives include the political motives and the social motives from the government.The internal motivation is mainly the motivations of equity incentive and the positive signal to the market,and stabilize the stock price.The repurchase of Guoyuan Securities Company has basically achieved its intended purpose,to a certain extent,to stabilize the stock price,enhance the confidence of investors,but also the stability of the entire securities market has played a certain role in promoting both In response to the government’s call,but also assume the social responsibility,the country and the people;also to achieve the repurchase company shares for the purpose of employee stock ownership plan.In the study of the repurchase of Guoyuan Securities Company,it was found that there was a problem that the share repurchase system was not perfect,the actual completion rate of the stock repurchase plan of the listed company was low,and there was a false share repurchase loophole.Regulations,and actively promote the employee stock ownership plan for the purpose of the share repurchase and other recommendations.