Analysis On The Repurchase Effect Of Nanji E-commerce Co.,Ltd.

At the beginning of 2020,when the economic environment was not ideal,many enterprises chose to support their stock prices by means of share buybacks,to strengthen investors’ confidence and deliver positive signals.In this paper,writer take certain typical Internet related famous enterprises established electricity at the South Pole for example,after the analysis of large-scale repurchase its in early 2020 and a series of actions,understand the cause of failure to achieve the desired effect,and sum up experience,strive for the inspiration of the whole stock market repurchase behavior and thinking.In this paper,from the perspective of the buyback,combined with the revision of the Company Law,the paper analyzes the impact of the buyback on the company’s profitability,capital structure,operating capacity,solvency and other financial aspects,so as to help the company to use the buyback to produce positive financial effects and promote the benign development of the company.Based on the South Pole electricity company as the main research object,using a short-term event study method,Du Pont analysis research methods to analyze the support type stock repurchase impact on corporate financial status and market situation,then from the aspects of theoretical basis of the specific to the introduction and analysis of relevant cases,combining the two,make the theory more clear,more justified case,the theory of matter,Stick to the facts.Finally,the case is summarized and enlightenment is obtained.The conclusion is that the buyback has no positive effect on market effect and financial effect.While displaying relevant theories and cases,readers will have a more concrete understanding and experience of the repurchase.Share repurchase is controversial due to its characteristics and different countries have different legislative modes.Compared with other types of repurchase,the repurchase with protection board has the risk of damaging minority shareholders.The risk mainly comes from the illegal behavior that affects the trading order,such as manipulating the market with internal information.In addition to taking Nan Ji E-commerce Co.,LTD as an example,this paper studies the changing trend of financial indicators reflecting the company’s operating capacity and debt paying ability before and after share repurchase.More importantly,it considers how to improve the system of repurchase and identify the risks in repurchase from the perspective of the government,the company and investors.