Research On The Impact Of Share Repurchase On Stock Price Crash Risk Of Listed Companies In China

Affected by the trade war,China’s stock market plunged in 2018.In order to restore the confidence of the market,relevant departments have revised a series of provisions on share repurchase in the company law to encourage listed companies to take the initiative to carry out share repurchase.Loose policies have made market participants carry out repurchase one after another,and the repurchase scale has increased year by year.In recent years,the phenomenon of share price collapse in Ashare market is not rare,which not only damages the health of the stock market to a great extent,but also limits the sustainable development of the stock market and infringes on the rights and interests of investors.In this context,experts and scholars at home and abroad have also carried out research on whether a series of loose policies issued by the government based on share repurchase have stabilized the operation of the stock market or increasingly accelerated the collapse of stock prices.If share repurchase can affect the risk of stock crash,what factors will affect the causal relationship between them? In order to solve the above problems,this paper selects China’s A-share listed companies from 2010 to 2020 as the main research sample to study the impact of share repurchase on the risk of share price collapse.At the same time,this paper also studies the impact of share repurchase on the risk of stock price collapse under different property rights.Furthermore,this paper studies the impact mechanism of share repurchase on the risk of stock price collapse.Finally,the elements of share repurchase are divided,and the effects of the heterogeneity of repurchase intensity,repurchase purpose and repurchase fund source on both sides are studied.This paper empirically concludes that share repurchase plays an important role as a "market stabilizer",so the share repurchase of listed companies is significantly negatively correlated with the risk of stock price collapse.Compared with state-owned enterprises,the implementation of share repurchase by private enterprises can more effectively reduce the risk of collapse.Listed companies improve the quality of information disclosure through share repurchase,which reduces the possibility of collapse.Among the samples that have implemented share repurchases,share repurchases with high intensity,the purpose of which is mostly equity incentive cancellation,and the source of funds is its own funds have a stronger negative correlation between share repurchases and the risk of share price collapse.The research results of this paper provide empirical evidence for the relationship and action mechanism between share repurchase and stock price collapse risk.Further discussion on heterogeneity is conducive to the improvement of share repurchase supervision and management mechanism and the optimization of market investors’ investment strategy,which has certain practical significance.