Analysis On The Motivation And Financial Effect Of Share Repurchase In Listed Companies

Share buyback,a capital operation,can effectively raise the stock price of an enterprise,send a signal to the market that the enterprise is doing well,and optimize the capital structure.With the economic globalization,the economic development of various countries is closely linked,and China's capital market environment is also deeply affected by the global economic situation.In recent years,China's A-share stock market has seen a number of sharp falls in stock prices,accompanied by the repurchase craze of listed companies.However,China's securities market started late,the development time of share repurchase is relatively short,and relevant domestic research theories are not complete,which leads some enterprises to blindly follow,causing enterprises to fall into financial difficulties,and is not conducive to the development of the capital market.In 2019,the amount of repurchase in China's A-share market reached a record high,with Yili shares becoming the largest buyer in 2019 with 5.793 billion yuan.Therefore,an analysis of the motives and financial effects of share buybacks by listed companies can enable managers to clearly understand their advantages and disadvantages and make reasonable buyback plans after comprehensive consideration,which is of great significance to the development of China's capital market.This dissertation takes Yili shares,a leading enterprise in dairy industry in China,as the research object,and makes a detailed analysis of its motivation and financial effects.First of all,based on the current domestic and foreign research theories,combined with the A-share market in China,we have mastered the development status of share repurchase of listed companies.In addition,it introduces the operating conditions of Yili shares from various aspects,understands in detail the process and results of Yili share repurchase event,and analyzes the real motivation of Yili share repurchase in combination with the internal and external environment of Yili shares.Then,through the event research method,the paper studies the impact of Yili shares issuing suggestive announcements on the market value of the enterprise,and concludes that share repurchase can improve the market value of the enterprise in a short period of time.Then,the author selects Yili shares and industry comparison company Guangming Dairy's relevant financial indicators,including debt paying ability,operating ability,profitability,growth ability and capital structure,etc.,and compares the financial information of Yili shares before and after buyback horizontally and vertically to obtain the financial effect of share buyback on the enterprise.Finally,combined with the previous analysis,this paper puts forward conclusions and prospects on Yili share buyback,hoping to provide a brief reference for improving the efficiency of share buyback and capital operation of listed companies.