| As a result of China’s socialist market economy and the unique nature of its capital market,share repurchases have only recently gained momentum due to regulatory changes that have eased restrictions and simplified decision-making processes.In response to these policy shifts,the number of Chinese enterprises implementing share repurchases has grown exponentially,with many companies reaping positive financial benefits from the strategy.However,share repurchases also carry significant risks,such as causing financial crises or being used to manipulate stock prices for personal gain,which can harm creditors and minority shareholders.As such,it is crucial for companies to adopt a scientific approach to guide their timing of share repurchases and subsequent share disposal.This study focuses on Changchun High-tech’s outstanding share repurchase in2021,utilizing literature research,case analysis,comparative analysis,and trend research methods.Drawing on signal transmission theory,free cash flow,and alternative dividends hypotheses,the paper analyzes the economic consequences of Changchun Gaoxin’s share repurchase.Specifically,the study evaluates and analyzes the market and financial effects of the repurchase based on time and financial data,explores the motivations of the repurchase from various angles,and examines the impact on Changchun High-tech’s business performance,creditor interests,shareholder interests,capital structure,and equity structure.Based on the Changchun Gaoxin case,the study draws a general conclusion regarding the timing of share repurchases,highlighting the importance of information disclosure and internal supervision to prevent insider trading and recommending the application of buffer funds from multiple funding sources to alleviate pressure.The study also offers practical insights for listed companies implementing share repurchases and suggests ways for regulators to improve the share repurchase system. |
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