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RESEARCH ON THE INFLUENCING FACTORS ON LISTED COMPANIES’ DECISIONS OF STOCK BUYBACKS

Wu, Hanling
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http://dx.doi.org/10.34944/dspace/8562
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This research is aimed to discover and test the potential influencing factors on stock buybacks for Chinese listed companies. 11 new influencing factors hypotheses are developed based on several prevailing hypotheses, such as the information signaling hypothesis, the free cash flow hypothesis, the optimal leverage hypothesis and the takeover deterrence hypothesis. The research will test 11 factors that potentially influence listed companies to buy back stocks. The regression and independent variables will be adjusted. The testing sample is from all the companies listed on the Shanghai Stock Exchange that had stock buyback transactions in 2019. Suggestions will be given according to the regression result regarding the potential influencing factors on stock buybacks for Chinese listed companies in 2019. Due to different influencing factors on stock buybacks, different operating methods may have different effects to achieve different goals. Therefore, the determinants of buyback methods in practice will be discussed. The advantages and disadvantages will be discussed from different perspectives, which can be very useful suggestions in stock buyback practice.
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