| Stock repurchases originated in the 1980 s.At that time,many western countries entered economic depression.Investors withdrew funds from the capital market.Some companies return the funds to the stockholders by stock repurchases,in order to face the government's restrictions on the company's distribution of cash dividends.With the development of China's stock market and the basic completion reform of split share structure,more and more listed companies recognized stock repurchasing as a tool for capital operation,especially in the stock market crash in mid-2015 and after the circuit breakers triggering market emergency response at the begining of 2016.The stock repurchase activities of listed companies in our country have seen explosive growth,and the financial effects of repurchases on companies have also become the focus of attention.This article takes the financial effect of the stock repurchase of China's listed companies as the starting point,chooses Shenzhen Hepalink Pharmaceutical Co,Ltd,which has the largest stock of the company's total stocks after the stock market crash in 2015,as its research object.Uses event research method,financial index analytical method and comprehensive performance evaluation method etc,to analyze the motives and process of stock repurchasing by Hepalink,and study the effect of stock repurchases on the financial effect of the company.Besides,to propose countermeasures and suggestions direct at Hepalink and the problems commonly existing in China's stock repurchases,Hoping to provide theoretical guidance for Hepalink and other companies that are making or plan to buy back stock.This paper first introduces the background and significance of share repurchase,and indicates the value of the research.Secondly,in the case study,the market response and financial performance of the stock repurchase before and after the stock repurchase are studied with the help of a variety of research methods.After the first implementation of the share repurchase on the day of the stock repurchase,the excess return rate is positive,and the change of the excess return has tended to be slow before the repurchase,indicating that the share repurchase has played a role in promoting and stabilizing the stock price.In addition,from four aspects of profitability,solvency,operating capacity and development ability,this paper compares and analyzes the changes in the financial performance of the stock repurchase before and after stock repurchase,and selects 14 financial indicators to conduct a comprehensive performance evaluation.It is found that the financial indicators and comprehensive performance scores of the Hepalink,which are declared to be repurchased,are all below.The downtrend indicates that it has a negative financial effect on enterprises.Through the previous study,we get the following conclusions: Although stock repurchase has played a role in stabilizing and promoting stock prices in a short period of time,it has a negative impact on the financial effect of the company in the long run.Finally,according to the specific situation of the company and the common problems in the share repurchase of our country,we put forward the countermeasures and suggestions from two aspects of the company itself and the macro management respectively. |
PDF Full Text Request