Title: Analysing the impact of corporate stock buybacks in China and the US equity markets

Authors: Haochen Guo

Addresses: Faculty of Economics, VŠB-Technical University of Ostrava, 70 200, Czech Republic

Abstract: This paper contributes to the comparative analysing the impact of corporate stock buybacks in China and the US equity markets. The reason to compare two equity markets with buybacks - in the US equity market, the largest source of the US equity demand has consistently been buybacks. However, in the China equity market, China's A-share market conducted a surging number of buybacks that began in 2018, it believes showed corporations' strong intention of bottom fishing and would support stock value. Based on that, this paper analyses the motivation and status analysis of buybacks in China and the US equity markets. Further, according to the financial assessment of two big corporate buybacks in China and the US equity markets as case studies. Therefore, demand for buybacks in the equity market still large, it suggests confidence in a corporation's performance buybacks is one way for corporations to reward shareholders and rejuvenate bull market.

Keywords: buybacks; buyback blackout period; dividend policy; EPS; earning per share; DuPont analysis; equity market.

DOI: 10.1504/IJMEF.2020.107687

International Journal of Monetary Economics and Finance, 2020 Vol.13 No.2, pp.89 - 110

Received: 08 Dec 2019
Accepted: 14 Jan 2020
Published online: 08 Jun 2020 *

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