Research On Choosing Behavior And Influencing Factors Of Listed Companies' Stock Repurchase

The development of China's stock repurchase started late.Early stock repurchase is an individual case and is also at the exploratory stage.The earliest stock repurchase case occurred in 1992.Dayu Garden adopted a directional repurchase method to repurchase Xiaoyu Garden's stock.After 2005,listed companies gradually repurchased public stocks.In 2008,most listed companies began to use centralized bidding to buy back stocks.Stock repurchases became an important financial tool for listed companies during this period.However,the relevant policies of stock repurchase during this period were not perfect,and fewer repurchase cases were allowed,the repurchase process was more complicated,and the repurchase period was short.These factors restricted the development of stock repurchase.The "Company Law" of 2018 revised the content of share repurchases,increasing the number of allowed repurchases,increasing the maximum amount of shares held by the company after the repurchase,and extending the period of the company's holding of shares after the repurchase.In 2018,a total of 782 listed companies in China's A-share market repurchased 61.7 billion shares.With the continuous increase of the size of stock repurchase in China's capital market and the continuous improvement of related policies,the two aspects of whether the company has the opportunity to repurchase stock and the factors that affect the timing of stock repurchase in stock repurchase are th e focus of this study.The motivation of stock repurchase and the impact of this behavior on the market is the focus of domestic research in this area,but whether there are timing choices for stock repurchase and what are the reasons that affect this choice have not been studied in depth.According to the market timing theory,the favorable opportunity for stock repurchase is when the stock price is undervalued.Based on a large number of listed company announcements,it can be found that most listed company announcements declare that the stock repurchase is to protect the interests of small and medium investors and maintain the company's stock price..Under the guidance of market timing theory and China's policy background,this paper explores the existence of China's market timing behavior and its influencing factors.This article selects 509 companies that have actually repurchased shares from 2005 to 2019,and uses the monthly repurchase index as the sample value,with a total of 1785 sample observations.First of all,the existence of timing of stocks is verified from the perspective of the price of stock repurchases.The results of the symbolic rank test show that the difference between the stock repurchase price and the market benchmark price has more negative rank than positive rank.Based on this situation,Tobit model needs to be used for multivariate linear regression,and the Fama-French four-factor model with momentum factor is introduced to test.This article is based on the empirical analysis of the stock return of the listed company two months before and after the stock repurchase.It is concluded that the repurchase ratio of the stock in the month of the repurchase is negatively related to the adjusted return rate of the stock before the repurchase,and the return of the stock after the repurchase is positively correlated with the repurchase ratio,thus indicating that after the decline in the stock yield and Before the rise is the key point of the stock repurchase behavior,and it is further concluded that there is reasonable evidence for the existence of timing in China's stock repurchase behavior.Finally,on the basis of the conclusions above,the factors affecting the timing of stocks are studied.By reading and consulting related literatures,previous scholars mainly researched from the aspects of corporate equity structure and the nature of controlling shareholders.The entry point of this article is to study the influencing factors of stock repurchase behavior from the perspective of the macro environment of the stock market repurchase.It is found that stock market returns and stock liquidity are factors that influence stock repurchase behavior.This article selects the cost savings value as the explained variable that affects the empirical part of the stock repurchase behavior.Through reading the literature,we find that market liquidity and stock market returns have a lag effect on repurchase behavior.Therefore,this paper conducts lagging observation research and empirical research on the factors affecting timing of stock repurchase.Empirical test whether the lag of stock liquidity and stock market returns has an effect on the timing of stock repurchase,and explore the impact of the lag and current period on the selection of stock repurchase.The research results show that the current and lagging stock market returns are positively correlated with the timing of repurchase.The current stock liquidity has the strongest impact on the selection of stock repurchase timing.Finally,combined with the development of stock repurchase in China's securities market,the corresponding policy recommendations are proposed from three levels of company,investor and government supervision.