Research On The Motivation And Effect Of Share Repurchase Of Listed Companies

Since the promulgation of the new company law in 2018,the behavior of share repurchase in China’s capital market has become more and more frequent.Different from the previous research mode of share repurchase,this paper innovatively explores the deepseated motivation of share repurchase and its subsequent capital market operation,and analyzes the market response to the event and the impact of the company’s future development and finance.This paper selects TCL technology,which is very active in share repurchase in the capital market in recent years,as the research object,and takes TCL technology’s share repurchase from February 14,2019 to December 3,2019 as the case.After that,through literature research,case analysis,statistical analysis,comparative analysis and event analysis,this paper further explores TCL technology’s share repurchase behavior.In this paper,we find that strategic transformation and consideration saving are the main driving forces for TCL technology’s share buyback.At the same time,we observe the market’s response to TCL technology’s share buyback by calculating car value.By calculating EVA to analyze the company’s value,we find that TCL technology’s share buyback has brought positive benefits to the enterprise,Increase the enterprise value.The results of this paper show that,for the stock repurchase,in the corresponding M & A activities,the stock repurchase can effectively help the company to carry out the early layout and reduce the cost of M & A.At the same time,enterprises still need to strengthen the links with suppliers,optimize and improve the integrated industrial chain,so as to reduce the corresponding procurement costs.But this behavior needs to be established under the background of mature and sound evaluation rules,otherwise it will not be able to safeguard the overall interests of listed companies.