The market for Gree's share buyback should be analysed

Abstract

With the continuous improvement of the capital market and related regulations, the number of companies implementing share buybacks has gradually increased. When faced with large fluctuations in the stock market, many companies choose share buybacks to stabilize their share prices. This paper selects the three phases of GREE's share buyback from 2020 to 2021 as the research object, and uses the event study method to analyse the changes in share price and excess return of GREE's share buyback process, and further analyses the market effects generated by the three phases of share buyback. The study found that the positive market effect of the three share buybacks implemented by Gree Electric was limited. By analysing the market effects of the share buybacks of Gree Electric, we suggest that companies implementing share buybacks should not overstate the positive effects of share buybacks.