Analysis Of The Market Effect Of Stock Repurchase And It's Impact On Corporate Performance

Stock repurchase refers to a way of capital operation,that is,a listed company uses its own funds or financing funds to repurchase the company's stock to stabilize the stock price and conduct equity incentives,thereby reducing the number of shares outside.Stock repurchases started late in the Chinese stock market,with a history of nearly 20 years.Previously,Chinese stock repurchase was closely related to stock trading reform.With the deepening of reform and opening up,the securities market has matured and the stock repurchase method has become increased.This year,with the emergence of the repurchase case,"repurchase" once became one of the hot words.On October 26,the sixth session of the Standing Committee of the 13th National People's Congress passed the regulations on amending the share repurchase,and further increased the allowable situations.As of the date of the new regulation,there were 581 listed companies in the A-shares that implemented stock repurchases.The size of repurchase funds has reached 62.395 billion yuan,including a large number of billions of dollars in repurchase.On the first trading day passed by the amendment to the Company Law;more than 40 companies responded positively.Judging from the industry distribution of stock repurchase companies,the number of enterprises implementing stock repurchases in the pharmaceutical industry ranks first.This study selects typical enterprises that have implemented stock repurchases in recent years from the pharmaceutical industry.In-depth analysis as a case enterprise is representative.At present,the research on stock repurchase is still not rich enough in China.Based on the real data,this paper makes a comparative analysis of the two stock repurchases before and after the case enterprises.Analyzing the market reaction and the impact of future performance caused by different motivations has certain reference value.This paper first summarizes the domestic and international research results on stock repurchase motivations,market effects and impact on performance.On this basis,the motivation of Chinese stock repurchase is calculated,and the current situation of domestic stock repurchase is made.Then use the event research method to select two kinds of motivations,compare and analyze the similarities and differences of the market effects generated by the repurchase driven by different drivers;analyze the performance of the two repurchases based on the changes of financial indicators in each quarter before and after the repurchase The impact of the re-introduction factor analysis method,further evaluation of the comprehensive performance before and after the stock repurchase^through the quantification of relevant indicators to consolidate the research conclusions.Finally,it is concluded that under different repurchase motivations,although stock repurchases can bring positive market effects,the two market reactions have differences in amplitude and timeliness,and there is the possibility of temporarily boosting stock prices;The improvement of the company's long-term performance is not obvious,and it cannot fundamentally improve the capital structure and increase the company's value.Explain that behind the current active repurchase enthusiasm of listed companies,the use of stock repurchases in Chinese market still needs to be improved.Finally,the previous research on stock repurchase mostly targets listed companies and capital markets.Based on this,this paper looks at the impact of stock repurchase from the perspective of investors,hoping to give investors a little reference,based on the company's fundamentals,rational Recognize stock repurchases and avoid the investment risks brought about by the so-called"repurchase" speculation.