| Share repurchase originated in the United States and grew up from the whole western capital market.But in our country,because of the restriction of policy,the development of securities market is not perfect restriction.The rise and fall of stock prices are closely related to the rise and fall of stock prices,which will lead to a series of adverse consequences such as the evaporation of stock market value,damage to investor confidence and delisting.In recent years,China’s stock market has seen a continuous "limit of 1,000shares".In order to encourage listed companies to save themselves,China Securities Regulatory Commission and other relevant departments introduced relevant policies on share repurchase in August2015 and November 2018 respectively.Under the support and incentive of the government,the companies that are qualified to carry out stock repurchase have also formulated stock repurchase plans and gradually put them into practice.In recent years,there have been frequent cases of multiple share buybacks implemented by several listed companies in China’s A-share market.Many companies have not achieved the expected results after conducting share repurchases for various reasons.In recent years,there have been frequent cases of multiple share buybacks implemented by several listed companies in China’s A-share market.Many companies have not achieved the expected results after conducting share repurchases for various reasons.Therefore,it is necessary to study representative repurchase cases in depth,which provides reference for companies and regulators to supervise share repurchases of listed companies.By analyzing the repurchases of companies in the pharmaceutical manufacturing industry,the results show that Kolon Pharmaceuticals is ranked 6th among 147 pharmaceutical manufacturing companies in terms of frequency of share repurchases,with four share repurchases from September 2015-December 2019,with a high number of repurchases and a high repurchase amount,which is a representative case of implementing share repurchases.The research content of this thesis is mainly the following parts:Firstly,introduce the research background and research significance,explain the research methods to be used,build the article writing structure as well as innovation and deficiency points.The related literature of domestic and foreign scholars is reviewed and sorted out from two aspects of share repurchase motivation and effect analysis,and the conclusions of previous scholars’ research are summarized.Second,the theoretical basis of share repurchases is elaborated,and different motivations of share repurchases and two analytical dimensions of repurchase effects are listed based on theoretical studies.The theoretical foundation is laid for the case study and research conducted in this thesis.Then the share repurchases of pharmaceutical manufacturing companies are analyzed,briefly introducing the case company,describing the history of the four share repurchases of the case company,and also comparing and analyzing the main points of the four share repurchase programs.Then,the motivation of share repurchase of Kelun Pharmaceuticals is explored in detail from five aspects in the context of the actual operation of Kelun Pharmaceuticals.The motivations are compared and the multiple share repurchase motivations are compiled.Finally,two aspects of market reaction and financial performance are analyzed respectively.In terms of market effect analysis,the cumulative excess returns during the window period after the four share repurchase announcements are calculated by applying the event study method,so as to obtain the upward and downward trends of share prices during the window period of the repurchase announcements and compare the market effects brought about by the four share repurchases.The market financial effects of the four share repurchases are analyzed in terms of earnings,operations,debt service,growth capacity and capital structure,and finally the financial effects of the four share repurchases are compared.Through the analysis of the motives and effects of multiple share repurchases of Kelun Pharmaceuticals,the following conclusions were obtained:(1)the implementation of share repurchases by Kelun Pharmaceuticals has had certain market and financial effects;(2)the implementation of share repurchases by Kelun Pharmaceuticals has reduced the cost of equity incentives;(3)share repurchases have optimized the equity structure of Kelun Pharmaceuticals;(4)multiple consecutive share repurchases by Kelun Pharmaceuticals have led to a diminishing positive effect.The following recommendations are given:(1)the timing of share repurchase should consider the motivation for repurchase;(2)the way of share repurchase should pay attention to prevent financial risk;(3)the company management should strengthen the awareness of share repurchase. |
