The Analysis On The Motivation And Financial Effect Fffstock Repurchase Of Listed Companies

Stock repurchase refers to the behavior of the company's issuing shares being repurchased by the company itself.Since the emergence of the stock market,malicious takeovers have occurred frequently in the West.Stock repurchase is a very effective anti-takeover measure,which can improve the capital structure,stabilize the company's share price and is widely used.Because of the relatively slow development of China's capital market,stock repurchase was not accepted by the Chinese until the implementation of the split share structure reform in 2005,and then familiar with the use of stock repurchase.Stock repurchase has now become the first choice for many enterprises in the face of stock market crisis.Therefore,the research and analysis of the motivation and financial effect of stock repurchase behavior has a very special significance for perfecting and deepening the relevant theory of this behavior.This article uses case study method,chooses JS Co.,Ltd.as a case study.According to the motivation theory hypothesis which has been summarized,the real motivation of repurchase is analyzed by describing the market dynamics and the company's own situation.It includes not only the motivation of increasing stock price on the surface and promoting returns,but also the hidden motivation such as enhancing investor confidence and preventing malicious mergers and acquisitions.And through the analysis of the positive and negative financial effects of repurchase,this paper mainly makes in-depth and specific analysis on the financial performance,capital structure changes and shareholder wealth changes before and after repurchase.The different effects of stock repurchase on financial effects are reflected more intuitively through various data and the chart images drawn.Finally,according to the analysis of the case,the real motivation of stock repurchase and whether repurchase has an impact on some aspects of financial effect are obtained.