Research On The Motivation And Consequences Of Stock Repurchase Of Listed Companies

The stock repurchase refers to the behavior of a listed company to use a fund to buy back some of the stocks that are out of circulation for certain reasons.As a capital operation method,stock repurchases help to optimize the company's capital structure and enhance the company's stock value,which is also an effective supplement to the company's dividend distribution policy.Relative to the western developed countries,the stock repurchase of our listed companies started late.Before 2005,due to the particularity of the capital market and the restrictions of the law,listed companies had less repurchasing of stocks.The main objects of repurchases were non-tradable shares,and the main motives of stock repurchases were to reduce state-owned shares or serve stock rights.Split reform.With the promulgation and implementation of the "Measures for the Management of Public Shares Repurchased by Listed Companies(Trial)" in 2005,there have been more cases of listed companies repurchasing stocks.In particular,since the outbreak of the financial crisis,some listed companies have announced the implementation of stock repurchases,and share repurchases have become the focus of the capital market because stock prices are seriously undervalued and the market rate is low.Therefore,exploring the motivation and consequences of stock repurchases has realistic and theoretical value for the development of China's capital market.This paper mainly constructs a theoretical framework,puts forward the possible normal motivations and bad motives in China's stock repurchase,and proposes several aspects from which to identify the motives for share repurchases,and then uses the two elements of healthy yuan and Kunming Pharmaceutical Group.The positive and negative cases are positively opposed to the comparative analysis.On the one hand,a deep analysis of the reasons for the repurchase described in the company's share repurchase announcement is conducted to find out whether there are negative motives and analyze their economic consequences.The different economic consequences of a share repurchase by a company with bad motives and normal motives,through the analysis of the motives and consequences of the two case repurchases,verify the possible normality and badness of the share repurchase proposed in the fourth section.Motivation,it is concluded that small and medium-sized investors should maintain certain vigilance for the repurchase of listed company shares.To raise awareness of the repurchase of shares,we must learn to identify the motives for the repurchase of listed company shares,strengthen the protection of small and medium shareholders,and solve market manipulation and The issue of insider trading,avoiding the conclusion of loss caused to the interests of small and medium investors,and then based on the former The question,put forward relevant policy recommendations,and should intensify efforts to improve the information disclosure system construction and so on share repurchases.It provides a certain reference for small and medium-sized investors to correctly understand the share buyback motives of listed companies and prevent their own interests from being compromised.