Research On The Impact Of Stock Repurchase Of Listed Companies On Stock Price Volatility

The securities market is the main channel for direct financing of a country and is an effective way to allocate economic resources.China's securities market has experienced rapid development since its establishment,creating new development opportunities for the national economy.However,compared with the mature securities markets in the West,the stock prices in China's securities markets are relatively volatile.The sharp fluctuations in stock prices have greatly harmed the interests of investors,affected the company's investment and financing behavior,and affected the efficiency and stability of economic development.Share repurchase,as an important capital operation method in the securities market,can not only optimize the capital structure,but also stabilize the stock market price.However,due to the long-term implementation of the repurchase system of "prohibition in principle and allowance of exceptions" in China,the repurchase of listed companies has been strictly restricted,resulting in the failure of the share repurchase to fully play its role.In April 2013,the Shanghai Stock Exchange issued the “Guidelines for Listed Companies Repurchasing Shares by Concentrated Bidding Transaction(2013 Revision)”,which further improved relevant regulations on the basis of the “Repurchase Measures” and“Supplementary Provisions”.The scope of application for share repurchase of listed companies has been expanded.After 2013,the frequency and scale of share repurchase by Chinese listed companies have increased year by year,providing a large sample for analyzing share repurchase behavior.This article systematically sorts out relevant Chinese and foreign literature from two aspects of share repurchase and stock price fluctuations.It is found that share repurchase has the function of optimizing capital structure,reducing the principal-agent problem and signal transmission,while the corporate governance level is high,the principal-agent problem is light and information The stock prices of companies with well-developed disclosure mechanisms are relatively stable.Therefore,this paper comprehensively uses the methods of status analysis,theoretical analysis and empirical analysis,as well as efficient market theory,signal transmission theory,and principal-agent theory to explain the influence of listed companies' repurchase behavior on the volatility of listed company's stock price and itsmechanism.The specific idea is as follows: This article selects the A-share data of listed companies from 2014 to 2018,and uses a multiple regression model to analyze the impact of share repurchase behavior of listed companies on the volatility of their stock prices.In order to avoid endogenous problems,the use of instrumental variables tests its effect,and further uses the median variable of information asymmetry to analyze the mechanism of the stock repurchase behavior of listed companies that affects the stock price volatility.Finally,it analyzes the difference of the effect of stock repurchase behavior of listed companies on stock price volatility under different stock concentration and property nature.The conclusion:(1)Taking all A shares in Shanghai and Shenzhen as research objects,the share repurchase behavior of listed companies has a significant weakening effect on the overall volatility of A shares.The conclusion shows that as a way of capital operation of listed companies,share repurchase can stabilize the stock market price and promote the healthy development of China's securities market;(2)Information asymmetry in the share repurchases of listed companies on stock price volatility Play an intermediary role in the impact of this,which is consistent with the role of information transfer in share repurchases;(3)Taking the listed company for share repurchase as a research object,the greater the proportion of listed company's share repurchase,the more stable its stock price,further explaining that in our country,the share repurchase plays an important role in market stability;(4)compared to listed companies with high concentration of equity,corporate share repurchase behavior of stock companies with dispersed equity The restraining effect is more obvious;(5)Under different property rights,there is a significant difference in the impact of share repurchase behavior of listed companies on stock price volatility.Compared with state-owned enterprises,it has a stronger effect on private enterprises.In general,based on the perspective of the mediating effect of information asymmetry,this paper analyzes the effect of share repurchase on the volatility of stock prices of listed companies,and further explores the reduction in share repurchases of listed companies under different ownership concentration and property rights The differences in stock price fluctuations have led to related policy recommendations,which have provided certain theoretical and empirical support for China's sharerepurchase system and the development of the securities market.