Research On The Motivation And Effect Of The Evergrande Real Estate Group Share Repurchase

Stock repurchase refers to the behavior of listed companies in the stock market to buy back the company's shares issued in the outside.In the western countries where hostile m & a prevailed in 1980 s,it was widely used as an effective anti-takeover measure,improving capital structure and temperature of company stock price.However,this method is relatively slow in China,and began to appear in the1990 s.it was not until the implementation of the split share reform in 2005 that share repurchases began to be known and applied in China.In particular,the 2015 A-share stock crash chain reaction led to H-share market shocks,including listed real estate stocks fell particularly serious.The long-term underestimation of HK stocks has enabled HK listed real estate companies to defend their stock prices through share buybacks to stabilize investor confidence.Stock repurchase has become the first choice for real estate listed companies to face the stock market crisis.Therefore,the research and analysis of the motivation and effect of stock repurchase behavior has an unusual significance for deepening and perfecting the relevant theory of the behavior.This paper uses the case study method,selects Evergrande real estate as a case,analyzes the real motivation of its repurchase according to the summarized motivation theory hypothesis and the economic environment and the present situation of the company itself,and systematically studies the impact of stock repurchase on the company from two angles of financial effect and market effect,so as to draw a research conclusion.This article is divided into five parts.The first part introduces the background and significance of the topic,research ideas and methods,The second part is the theoretical basis and literature review.The related theories and literatures at home and abroad are summarized.The third part is a case study,which introduces the basic situation of Evergrande real estate,the social background,the repurchase process and the major shareholders' shareholding of Evergrande real estate.Then analyze the motivation of stock repurchase,the analysis mainly uses the motivation test method,The analysis mainly adopts the motivation test method,and comprehensively considers factors to test the signal transmission motivation,earnings per share motivation and shareholder control motivation,and obtains the real motivation of stock repurchase.The fourth part is the effect analysis.Combined with relevant financial data,the financial effect and market effect of Evergrande stock repurchase are analyzed.The fifth part is the conclusion and enlightenment.Through the previous analysis of Evergrande stock repurchase case,this part summarizes the conclusion of Evergrande stock repurchase,and provides relevant enlightenment for the implementation of Evergrande stock repurchase after.The conclusions are as follows:Evergrande's motivation to implement share repurchase is not only to raise the share price,but also to improve the earnings per share through share repurchase,so as to ensure the control of the enterprise.This stock repurchase has brought good financial and market effects to the company.