Research On The Motivation And Effect Of Midea Group’s Stock Repurchase

Stock repurchase refers to a listed company’s use of cash and other methods to repurchase a certain amount of shares issued by the company from the stock market.It is an important financial strategy for listed companies.Stock repurchase has only a history of more than 20 years in my country’s securities market.With the popularization of stock repurchase and the continuous introduction of various policies,the state has gradually relaxed the conditions for listed companies to carry out stock repurchase,all in order to encourage listed companies to carry out stock repurchase.Repurchase of stocks will further improve the basic system of the market and make the system more in line with the current Chinese national conditions,which will help promote the development of the market economy.Therefore,there are more and more stock repurchase cases for scholars to study.This article selects Midea Group as the research object.After sorting out relevant literature and theories,it uses literature research method,case research method,and financial indicator analysis method to study the case of Midea Group’s stock repurchase in 2019.In the overall analysis of Midea Group’s stocks,it is found that Midea Group wants to send a signal to social investors that the company’s stock price is currently undervalued through stock repurchase,so as to achieve the purpose of stabilizing the company’s stock price and enhancing the company’s overall value.To a certain extent,it also takes into account other influencing factors,conforms to the policy guidance,and enhances the external image.From the perspective of Midea Group’s stock repurchase market effect,the repurchase has controlled the continued decline in stocks to a certain extent.This shows that Midea’s share repurchase has indeed played a role in stabilizing stock prices in the short term,but in the long run Look,Midea’s stock has not been continuously improved.In terms of financial effects,stock repurchase has not affected the solvency of the company,and in the short term can improve the company’s operating capacity,operating performance,and optimize the group’s cash flow and corporate equity structure.After understanding the relevant theories of stock repurchase and conducting an in-depth analysis of the Midea Group’s stock repurchase case,this article believes that companies should accurately grasp the timing of share repurchase,establish a value investment concept through stock repurchase,and pay attention to the diversification and motivation of stock repurchase.The company’s long-term growth ability after stock repurchase.Through the analysis of the case study of Midea Group’s stock repurchase,this article hopes to provide some reference and reference experience for other listed companies in their stock repurchase.