Abstract

Share repurchase refers to the behavior of listed companies to repurchase their own shares from the stock market for stabilizing the share price and improving the governance structure. The empirical evidence of share repurchase of Chinese A-share listed companies during the period from 2021.1.1 to 2024.1.1 is collected to construct a model, and an empirical study is conducted based on the event study method in STATA. The top four industries with the highest percentage in the sample are selected for comparative analysis. The results of the study show that for the effect of share repurchase on share price, China's stock market also behaves in the same way as the western capital market, and share repurchase has a significant positive promotion effect on listed companies' stock price, but the promotion effect is short-lived. It is also found that listed firms with share repurchases have significant positive excess stock returns before the repurchase announcement, reflecting the fact that there is indeed an early leakage of repurchase information in the Chinese share repurchase market.