| Share repurchase refers to the repurchase of a certain amount of the company's outstanding shares by a listed company on the stock market.The company can repurchase the company's shares through collective bidding,tender offer and other means,so as to reduce the number of outstanding common shares of the company.In the international stock market,listed companies often use stock buybacks to stabilize the stock market and promote the stable operation of the stock market.In April 2008,after the a-share market in China dropped by nearly 50%,relevant management departments successively issued policies to lift the ban on listed companies' repurchase of public shares,and encouraged listed companies to repurchase their shares.Therefore,this paper starts from the motivation and financial effects of stock repurchase of listed companies,and analyzes the case of Zoomlion's stock repurchase in 2017,and explore the application effect of stock repurchase in China.Paper first elaborates the research background of stock repurchase,then carries on the summary of stock repurchase,and analyzes the present situation of Chinese stock repurchase.The fourth part studies the case of Zoomlion Co.,Ltd.In the analysis of zoomlion's share repurchase case,the paper first introduces its share repurchase process,then analyzes its real motivations for repurchase,and then analyzes the influence of share repurchase on Zoomlion from the perspective of financial effect.Through the analysis,we can see stock repurchases can boost the Zoomlion's short-term stock price,but the effect is not obvious for a long time.The overall stock repurchases can improve the company's earnings per share,reduce the company's weighted average cost of capital,and enhance the image of the company.Based on the analysis of zoomlion's share repurchase,some conclusions can be drawn in the stock repurchase of listed companies,as well as some suggestions on the national policy of share repurchase. |
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