Research On The Influence Of Open Market Share Repurchase On Market Value Management

As a widely used capital operation tool,share repurchase has the functions of improving corporate governance structure and optimizing capital structure.In recent years,my country’s A-share market has been sluggish,and share repurchase has become a common method for listed companies to save the continuous decline of stock prices.The number and scale of repurchases have begun to grow explosively.In order to study the impact of share repurchase on market value management,this paper selects Midea Group,which is typical in the share repurchase market,as a case study.According to the three elements of market value management,the impact of share repurchase on value creation,value realization and value management is analyzed.analyzed separately.This paper finds that in terms of value creation,share repurchase can effectively improve the company’s performance by increasing the company’s financial leverage,reducing financing costs,and improving corporate governance structure.In terms of value management,the good effect and comparative advantage of share repurchase will become the value of the enterprise.The preferred capital management tool when it is undervalued.To sum up,share repurchase has a positive effect on the market value management of listed companies,and will ultimately promote the discovery of value in the capital market and the return of company value.Combined with the case,this paper puts forward corresponding suggestions on the market value management of share repurchase from the three levels of listed companies,regulators and investors.