Agency problem in dividend payment and stock repurchase

The specific question is:

1. Dividend payment agency problem: Emphasize the role of principal-agent problem between insiders and external shareholders in early dividends, and think that under the premise of agency problem, appropriate dividend policy will help to ensure that managers act in accordance with shareholders' interests.

2. Stock repurchase agent: Listed companies buy back shares because they feel that the current share price is too low to reflect the company's value. It is better to buy it yourself than to be sold cheaply. You can also see the news that some big companies often spend huge sums of money to buy back. This kind of repurchase will generally send a signal to the market that the company's value is seriously underestimated, and then stabilize or even increase the company's share price.

Stock repurchase started late in China, with a small scale and low frequency. Up to now, there are less than 20 real stock repurchases. As far as China is concerned, the theory of share repurchase motivation is of great practical significance in undertaking the historical mission of adjusting the ownership structure, although it has a large or small space to play under the background of further deepening the economic system reform.