Research On Motivation And Economic Consequences Of Share Repurchase Of Listed Companies

Share repurchase refers to an act that a listed company repurchases its own shares in the secondary circulation market by means of collective bidding,offer repurchase,etc,so as to reduce the number of common shares that this company has issued outside.In recent years,with the maturity and perfection of Chinese capital market and the gradual promotion and implementation of share repurchase regulatory policies,share repurchase of listed companies continue to grow and develop,gradually becoming an important method operating the capital market of listed companies in China.Through share repurchase,listed companies can stabilize stock price,enhance the management of market value,improve capital structure,maintain capital operation,motivate executives and employees,improve equity structure and enhance control rights.The implementation of share repurchase by listed companies has important value for the capital operation and development of enterprises.By selecting Jilin Aodong Pharmaceutical Company as the object of a case study and combining case analysis with text analysis,this paper makes a systematic study on the behavioral motivation and economic consequences of share repurchase by listed companies.The thesis is divided into four parts:(1)Introduce institutional and realistic background.Firstly,the institutional background of share repurchase is sorted out by studying the politic documents related to share repurchase issued by regulators in recent years.Secondly,the paper investigates the market background and analyzes the current situation and development trend of share repurchase of listed companies in China's capital market recently.(2)Analysis on the implementation background and plan of Jilin Aodong Pharmaceutical Company.Focusing on the case study of Jilin Aodong,this paper analyzes the background environment of share repurchase,and systematically analyzes the behavioral strategies and corresponding contract elements of share repurchase.(3)Investigation on the motivation of share repurchase by Jilin Aodong Pharmaceutical Company.This paper systematically examines the real motivation of buyback from four aspects:employee motivation,signal transmission,capital allocation and leverage mobilization.(4)Investigation on the economic consequences of Jilin Aodong Pharmaceutical Company's share repurchase.This paper analyzes the effect of Jilin Aodong Pharmaceutical Company's share repurchase on the company's operation from two aspects including market performance and financial performance.This paper finds that the share repurchase of Jilin Aodong Pharmaceutical Company can promote the company's stock price and enhance the company's performance.The research in this paper is a important reference for the capital operation and equity governance of listed companies,and has significant realistic enlightenment for regulators to conduct market supervision and investor education.