The Study On The Economic Consequences Of Zoomlion Co.,Ltd.'s Stock Repurchase

With the continuous development of the capital market,relevant policies for stock repurchases have become more and more accommodative.At present,the principle has been changed from "prohibition in principle and exceptions allowed" to encourage listed companies to implement stock repurchases.In particular,since the promulgation of the new "Company Law" in 2018,Chinese enterprises have gradually realized the necessity of stock repurchases,and more and more listed companies have chosen to implement stock repurchases.In 2018,we have ushered in a "repurchase wave".As a leading company in the construction machinery industry,Zoomlion has implemented three stock repurchases since its listing,including one Hong Kong stock repurchase and two A stock repurchase.The repurchase behavior is relatively frequent.This article takes Zoomlion as its research object.Based on its first A-stock repurchase,this paper analyzes the causes and processes of its stock repurchase,and uses case study method,event research method,financial index analysis method and factor analysis method to explore the stock repurchase strategy.The impact of Zoomlion's market and financial effects is hoped to provide a reference for other listed companies and Zoomlion to implement stock repurchases in the future.This article first explains the concept and method of stock repurchase,sorts out the relevant theories of stock repurchase,and analyzes the economic consequences of stock repurchase.Second,it briefly introduces the case of Zoomlion,and explores the stock repurchase of Zoomlion.Causes to analyze its stock repurchase process;then use event research to analyze the long-term and short-term market effects of Zoomlion after the stock repurchase;Next,explore the financial implications of Zoomlion after the stock repurchase through basic financial indicators and factor analysis Performance.The research found that the short-term market effect of Zoomlion's stock repurchase is not significant,but there is a positive long-term market effect;after the Zoomlion stock repurchase,its long-term performance ability has been improved,and its profitability,operating capacity and development capacity are different.With the improvement of the degree,the solvency decreased slightly;the implementation of Zoomlion's stock repurchase program was small and the efficiency was low.Finally,based on the above analysis,this article draws a few enlightenments: sufficient cash flow is the premise of stock repurchases and is conducive to the smooth implementation of stock repurchases;listed companies should choose a good one according to the market environment and corporate development Timing of implementingstock repurchase;after issuing the stock repurchase plan,enterprises should implement the stock repurchase program with great efforts and efficiency to ensure the effect of stock repurchase.