title: A Study on the Effect of Share Repurchase on Stock Prices of Chinese Listed Companies
title: Ð²ÑÐ¿ÑÑÐºÐ½Ð°Ñ ÐºÐ²Ð°Ð»Ð¸ÑÐ¸ÐºÐ°ÑÐ¸Ð¾Ð½Ð½Ð°Ñ ÑÐ°Ð±Ð¾ÑÐ° Ð¼Ð°Ð³Ð¸ÑÑÑÐ°
titleType: Subtitle
title: ÐÑÑÐ»ÐµÐ´Ð¾Ð²Ð°Ð½Ð¸Ðµ Ð²Ð»Ð¸ÑÐ½Ð¸Ñ Ð²ÑÐºÑÐ¿Ð° Ð°ÐºÑÐ¸Ð¹ Ð½Ð° ÑÐµÐ½Ñ Ð°ÐºÑÐ¸Ð¹ ÐºÐ¸ÑÐ°Ð¹ÑÐºÐ¸Ñ ÐºÐ¾Ð¼Ð¿Ð°Ð½Ð¸Ð¹, Ð·Ð°ÑÐµÐ³Ð¸ÑÑÑÐ¸ÑÐ¾Ð²Ð°Ð½Ð½ÑÑ Ð½Ð° Ð±Ð¸ÑÐ¶Ðµ
Creators: name: ÐÑÐ¹ ÐÐ¸Ð½Ð»Ð¸
Publisher: name: Ð¡Ð°Ð½ÐºÑ-ÐÐµÑÐµÑÐ±ÑÑÐ³ÑÐºÐ¸Ð¹ Ð¿Ð¾Ð»Ð¸ÑÐµÑÐ½Ð¸ÑÐµÑÐºÐ¸Ð¹ ÑÐ½Ð¸Ð²ÐµÑÑÐ¸ÑÐµÑ ÐÐµÑÑÐ° ÐÐµÐ»Ð¸ÐºÐ¾Ð³Ð¾
Year: 2024
Subjects: share repurchase
stock price
event study
comparative analysis

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description: Share repurchase refers to the act of a listed company to repurchase its own shares from the stock market for the purpose of stabilizing the share price and improving the governance structure. The implementation of share repurchase can release positive signals to the secondary market, indicating that the company attaches importance to investor relations management and has the awareness of market value management, which is also conducive to the overall stability of the market. Chinese scholars have been continuously adding and enriching their research on share repurchase. The data on share repurchase has increased significantly in the past three years, and the effect of share repurchase on share price needs to be further researched in the face of this new phenomenon. Based on the literature review and theoretical research, this paper constructs a model using empirical evidence of share buybacks by Chinese A-share listed companies during the period from 2021.1.1 to 2024.1.1, conducts an empirical study based on the event study method in STATA, and determines the significance of the effect of share buybacks on stock prices by calculating the average daily abnormal return and the average daily cumulative abnormal return, and conducting a t-test and a p-test . The top four industries with the highest percentage in the sample are selected for comparative analysis. Finally, based on the results of the empirical tests, a viewpoint is suggested. The results of the study show that Chinas stock market performs the same as Western capital markets in terms of the impact of share repurchases on stock prices, and the price of company shares will rise with the release of repurchase information announcements. Share repurchase has a significant positive effect on the stock price of listed companies, but the promotion effect is short-lived. The results also show that the stock returns of listed companies that carry out share repurchases have shown significant positive excess returns before the repurchase announcement, reflecting that there is indeed an early leakage of repurchase information in Chinas share repurchase market.