Study On Financial Effect Of Share Repurchback Of Listed Companies

The origin of share repurchase is the USA,and grew up from the whole western capital market.However,the policy constraints and the tender operation process of the securities circulation marketplace are the cause of growth leisurely.The ups and downs of stock prices are the response of the long term funds market to the company’s future progress prospects.A sharp drop may cause a series of negative results such as the evaporation of market value,the frustration of investor confidence,and even the delisting of the market.In recent years,the phenomenon of one thousand shares falling to the limit has occurred in the domestic stock market one after another.In order to encourage listed companies to actively save themselves,the CSRC and other relevant departments jointly issued share repurchase policies in August 2015 and November 2018 respectively.The laws and regulations heartens quoted company that meet the repurchase requirements begin to formulate repurchase plans and gradually implement them.A cademic research and practice are always mutually beneficial.With the increase in volume of intestine buyback cases,the academic circles continue to explore the motivation and effect of corporate buyback with practical cases as the analysis sample,and the systematic and mature theories further promote the development of domestic share buyback.The paper put more emphasis on reasons for share counterpurchase and financial impacts about the Midea Group,which builds on the backdrop and relevant theoretical basis of share repurchase.First,this document briefly outlines the research context and significance of the repurchase of stocks and research results for local and international academics,and describes the concept and theoretical representation of the stock market,which lays the foundation for subsequent analysis.Thereafter,combined with the interior and exterior surroundings of the Midea Group,it analyzes its actual reasons for share counterpurchase.On this basis,it uses factor analysis method and event research method to obtain repurchase financial results.Finally,according to the analysis process,I draw conclusions and make appropriate recommendations.isThrough comparison and analysis,this paper concludes that: first,the purchase of large shares in private funds will brings pressure to pay off;second,share repurchase is indeed effective in promoting share price in a short time,but the long-term direction of the company’s stock price is under the influence of the broader market;third,information is leaked in advance in the implementation process of share repurchase.This paper aims to use the above research to enhance investors and public companies’ further know and understanding of share repurchase,and to provide some reference to other public companies that intend to use share repurchase.