Study On The Short-term Effect Of Stock Repurchase Announcement Of A-share Listed Companies And Its Influencing Factors

Stock repurchase refers to the behavior of a listed company to repurchase a certain amount of common stock issued by its company from the stock market by using its own funds or funds obtained through financing.In developed capital markets such as Europe and the United States,the frequency of stock repurchase events has become higher and higher,and has been widely recognized.Stock repurchase has become one of the most direct ways for companies to raise their share prices.At the same time,in corporate governance,it has high application value in adjusting the capital structure of enterprises,implementing equity incentive policies,improving the company’s operational capacity and investor confidence.After the reform of non-tradable shares,China’s capital market has developed rapidly,and the relevant policies and regulations of stock repurchase have been promulgated one after another,which makes stock repurchase legal,and the way of stock repurchase has begun to officially enter China’s A-share market.With the rapid development of China’s stock market,relevant scholars have made more in-depth research on the theory of stock repurchase,and the laws and regulations matching it have become more perfect.The application of stock repurchase in China’s stock market is also more extensive.After reading a lot of research literature on stock repurchase,the author takes the definition and classification of stock repurchase as the breakthrough point,considering the actual situation of A-share market in China.Firstly,in the theoreticalpart,the author expounds the origin and legal procedure of stock repurchase to readers,makes a general statement on the development of stock repurchase in foreign countries,classifies and summarizes the mainstream mechanism hypothesis of stock repurchase according to market research reports and the views of famous scholars,and holds that stock repurchase is promoting company shares.Price,optimizing the capital structure and management structure of the company,and enhancing investor confidence play a more obvious role.Then it describes the development of stock repurchase in our country,analyses the motivation of stock repurchase and its practical application from the theoretical level,and sums up the reasons why stock repurchase is cold in our country from two aspects of company internal governance and external legal system.In the empirical aspect,this paper makes a number of theoretical proofs on the reaction of stock repurchase announcement in China’s stock market.As one of the innovative points of this paper,API is introduced as the main index to measure market reaction.Circumstances affect.The test results prove that the announcement of stock repurchase will cause a more obvious effect of stock price promotion;but at the same time,it is also found that the fluctuation of stock price has begun to become obvious before the announcement is issued,so it is inferred that there is still some information leakage in advance in China’s capital market.On this basis,through theoretical assumptions and empirical analysis,the author deeply studies the impact of different control variables on abnormal returns.In terms of financial factors,the return on net value and output and the growth rate of main business have obvious effects on abnormal returns,which are also the profitability and growth indicators that investors pay more attention to.When investors have better expectations for the future of the company,the market reaction caused by the announcement of stock repurchase will be more intense.From the perspective of company management,according to the control market hypothesis of stock repurchase,agency cost hypothesis and information transmission hypothesis,this paper studies the effects of ownership concentration,managerial confidence and cash use on excess earnings.Among them,the corporate governance structure factor has obvious response to the market effect of stock repurchase,which proves that the lowerthe proportion of major shareholders’ shares,the stronger the market reaction of stock repurchase.The possible reason is that the company can increase the shareholding of major shareholders through stock repurchase,which can raise the company’s share price,enhance the confidence of shareholders,and can be used in confrontation.Malicious takeover behavior;managerial self-confidence does not have a significant impact on excess earnings.The possible reason is that there is overconfidence in managers in China’s market,overestimating the profitability and future value of enterprises,ignoring the pressure of repurchase costs,and too strong control power can not reasonably transmit the undervalued information of stock prices.The agency cost hypothesis has not been verified,the effect of corporate cash management on stock price rise after repurchase is not significant,and the market does not fully agree with the company’s behavior of repurchasing surplus cash.It is more believed that the company lacks a reasonable and efficient means of investment as a supplement;the signaling hypothesis has been tested.It proves that when the stock price is undervalued,the purpose of information transmission can be achieved by stock repurchase,which is also verified by the size of the company’s assets.At the same time,the impact of asset-liability ratio on the announcement effect is not significant.It also proves that the tax shield effect of Listed Companies in China is very obvious.The effect of tax avoidance through repurchase is very weak.Rational control of debt structure has become the focus of corporate governance.At the end of the article,the author combines the actual situation of stock repurchase in China’s securities market with the results of empirical analysis,and the incompleteness of China’s system and regulations in this field,summarizes the situation of stock repurchase in China’s A-share market,and puts forward relevant suggestions for the shortcomings.