Research On The Motivation And Financial Effect Of Stock Returns In Mengwang Company

Stock buyback originated in the United States,began to attract the attention of scholars in the 1950 s,and began to prevail in the 1980 s,developing strongly in the western capital market.Compared with western countries,China's capital market develops late.Due to the different market system,there are many differences between China's stock repurchase and western stock repurchase.In the 1990 s,there were many cases of stock buyback in China,but most of them were aimed at the state-owned shares,in order to solve the problem of excessive concentration of state-owned equity.At that time,the securities market had more restrictions on this behavior.With the continuous development and gradual improvement of China's securities market,the government gradually liberalized the restrictions on stock repurchase.In June 2005,China Securities Regulatory Commission(CSRC)issued the measures for the administration of the repurchase of public shares by listed companies(for Trial Implementation).Due to the relaxation of policies,more and more listed companies began to choose the capital operation tool of stock repurchase.Nowadays,the stock repurchase behavior appears more and more frequently in the capital market,and the purpose of each listed company to use this capital operation tool is also different.Consequently,it is of theoretical and practical significance to explore the real motivation of stock repurchase and its effect..Based on the collection,collation and reading of relevant literature,this paper makes a related description of domestic and foreign scholars' literature on stock repurchase motivation and repurchase effect.From a macro perspective,the types of stock buyback can be divided into two categories,i.e.conventional buyback and strategic buyback;the ways of stock buyback can be divided into four categories according to different factors such as buyback location and buyback price.On the basis of the previous theory,aiming at the case of stock buyback of mengwang group,combined with the company announcement and other information,this paper analyzes the motivation of stock buyback and explores its deep motivation.Based on the motivation of stock buyback of mengwang group,combined with the relevant financial data,the paper studies the financial effect after buyback by using theindex comparison method.It mainly analyzes the impact on the stock price,the change of equity structure and the change of financial performance after repurchase,and finally draws the case enlightenment and conclusion.This paper hopes that with the help of this case study of stock repurchase,it can contribute to the development of mengwang group,make more relevant demanders have a more rational and objective understanding of the behavior of the stock repurchase,and at the same time bring certain reference significance to other listed companies in the industry,and make contribution to the development of China's capital market.