A Case Study On The Motive And Scheme Of Stock Repurchase Of Listed Companies

Stock repurchase originated from the United States in the last century in 60 s,China’s first stock repurchase event occurred in 1992,the merger of Big Yu Garden and Little Yu Garden happened.Due to The Chinese capital market development’s lagging and special China conditions,during the later ten years stock repurchase events were aimed to solve the China capital market reform and management problems of listed companies.After 2005,China’s listed companies’ s stock repurchase cases gradually increased,while the theoretical research of stock repurchase was deepening.This is not only due to the deregulation of domestic laws and regulations,but also some of the advantages of the stock repurchase itself are capable to meet the financial needs of listed companies.Therefore,it is of great significance to study the motivation of stock repurchase and the design of stock repurchase plan.In this paper,Qingdao Haier is chosen as the research object.the research focuses on the stock repurchase motivation and stock repurchase program design.By case study method,the Qingdao Haier stock repurchase case was analyzed in detail.Based on the analysis of domestic and foreign research status,this paper focuses on the current main stock repurchase motivation hypothesis and the historical process of China’s stock repurchase.At the same time,on the basis of the introduction of the background of Qingdao Haier enterprise and the relevant financial policies,the paper reviews the stock repurchase events of Qingdao Haier,and then makes a deep analysis on the motivation of stock repurchase and the scheme.The study found that Qingdao Haier stock repurchase motivation is not single,there may exist motivational factor playing a main role.The stock repurchase motives will be supported by the repurchase program and reflected in the repurchase program.In this paper,some important conclusions are obtained.Facing the new operating environment and capital market conditions,simply relying on the traditional dividend policy is hard to achieve the financial goal of the enterprise.the stock repurchase can compensate for the shortcomings of traditional dividend policy.The proper use of stock repurchase policy is beneficial to the enterprise to face the risk of the capital market,which can also improve the financial performance of the company through the stock repurchase.In addition,enterprises should pay attention to the issue of stock repurchase announcement and the design of the stock repurchase program.The standard of a successful stock repurchase is whether the initial repurchase motive is realized and the realization of the repurchase motive should be undertaken by the design of the scheme.Therefore,the design of stock repurchase plan should be based on the realization of stock repurchase motivation.