Analysis On The Motivation And Effect Of Yabao Pharmaceutical Stock Repurchase

With the rapid development of China's economy and the growing maturity of the capital market,more and more listed companies choose the financial tool of stock repurchase,which plays a role in the capital operation and business operation of listed companies.The study of stock repurchase cases completed by listed companies is of positive practical significance to the development of stock repurchase in China.The analysis of the motivation and effect of stock repurchase by listed companies can enrich the existing stock repurchase theories and guide the practice of listed companies.In this paper,starting from the motivation and effect of stock repurchase by listed companies in China,yabao pharmaceutical stock repurchase was selected as the research object,and the motivation and effect of yabao pharmaceutical stock repurchase was studied by case analysis,event study and factor analysis.Firstly,it introduces the background and significance of yabao pharmaceutical's stock repurchase.Secondly,it conducts case analysis on yabao pharmaceutical's stock repurchase,mainly including the motivation analysis,market effect analysis and financial effect analysis of the stock repurchase.Finally,based on the summary of yabao pharmaceutical's share repurchase case,this paper puts forward some Suggestions for the problems in China's stock repurchase behavior.Through the research on yabao pharmaceutical's stock repurchase behavior,it can be found that yabao pharmaceutical has the motivation to increase the stock price and adjust the financial leverage,but the motivation to reduce the agency cost through stock repurchase is not significant.The analysis results of the market effect of yabao pharmaceutical's stock buyback show that the stock buyback can make yabao pharmaceutical's stock price rise in the short term,but it cannot guarantee the long-term stable growth of the company's stock price.Based on the analysis of the financial effect of yabao pharmaceutical's share repurchase,it is found that the implementation of share repurchase can further stabilize and improve the control power of the company,and at the same time,the implementation of share repurchase can reduce the weighted average cost of capital of yabao pharmaceutical and optimize the capital structure of the company.Based on the case study of yabao pharmaceutical company's stock repurchase,this paper provides reference and experience for the effective implementation of stock repurchase by other listed companies,so as to enable stock repurchase to better play the market function and promote the development of China's stock market in a better direction.