Research On Invesnance’s Issue Of The Listed Media Companies

In this dissertation, the author selects the listed media companies in mainland China as the object of research from the investment and financing theory as the study paradigm, analyzes their current conditions of financing, refinancing and investment efficiency of the listed media companies from the two levels of the cost of financing and investment efficiency. From the perspective of industrial economy and media economy, the media companies rely on the financing of equity, have erroneous tendency in investment structure and low-efficiency. And finally, on the basis of qualitative and quantitative analysis, literature analysis and case studies, comparative analysis and historical analysis, the dissertation puts forward some solution.This dissertation holds that the changes of the operation of the media enterprises, IPO and the appearance of media stock are the result of the change of media institution transformation. After the "enterprisizationâ†'enterpriseâ†'listed companies" the media companies open up a new financing channels-IPO, this financing channels alleviate the bottleneck of funds. But the study found that the media listed companies IPO is high underpricing and greatly reduces the efficiency of financing.At the same time, the listed media companies generally showed low asset-liability ratio, the media give up the use of financial leverage to obtain the possibility of income. Additionally, the listed media companies after decades of development, the capacity of endogenous financing is still very limited, the equity financing is still the major financing channels current.From the point of view of industrial development, the content industry should be the basis of the media industry, media companies should strive to hold the content as the foundation to last. This dissertation analyzes reasons of low-investment in content. The government should give financial assistance and encouragement in connection with production of content owing to its quasi-public and positive Externalities. Because content is the foundation of China’s media industry and the dominant position, the listed media companies which occupy the best resource should wait for no man, to intensify the operation of content.From the perspective of the theory of structure of the investment, media companies can not rigidly adhere to their own domain, there is a significant distinction between the media industry and general industry, the consumption of media is a kind of information consumption, the level of consumer information is influenced by the host region’s economy situation. Therefore, the media enterprises’ investment in the developed areas is the interest of the instinct. In accordance with Chinese current media institution, it is feasible to manage media with cross-regional, and in order to line with the international market needs, the media should also be careful to try cross-border investment.Taking the media company’s true financial situation as a case, the author analyze the cost of capital. The dissertation holds that the rational design of the financing issue price of products can effectively reduce the individual cost of capital; in the choice of financing options, it is important to consider the weighted average cost of capital and the feasibility of implementation of financing program.Using quantitative analysis method, the dissertation selects TIK and China Television Media, analyzes their investment efficiency.The dissertation finds that:mergers and acquisitions were their basic investment tools to expand through carding the process the diversification investment of News Corporation, and their investment is closely around the two core value chains-content and channels, News Corporation’s investment in new projects is very few, it has been always actively looking for the goal, and then buying it to operate, practicing the "prefer buying to opening shop" investment principles. At the same time, News Corporation reduced the pressure of funds and adjusted the investment sturcture through the sale of the assets.This dissertation holds that the diversity investment put the theory of diversification into practice. However, some listed media companies’ dispersing investment are often hard to operate because of lack of necessary talent, experience, which is not conducive to the media’s main industry development. The disseretation also points out that a number of listed media companies act as "financial company" investment behavior. But financial investment of the listed media companies is a dangerous game. The media should perform a media main industry-related diversification investment, and the listed some investment strategy must be followed:Based on the "prefer buying to opening shop" investment strategy of mergers and acquisitions; Based on the "1+1> 2" investment strategy of the Union; Based on economics of scale and scope of the investment strategy of horizontal integration; based on the reduce transaction costs of investment strategy of vertical integration; Based on "new combination" of innovative investment strategies; Based on the "technical lead" of new technology investment strategy.In view of the listed media companies in the investment and financing problems, the paper offers recommendations for improvement from the government finance, corporate finance, capital operation, corporate financial management and risk control. This dissertation holds that:the media industry is also just a infant industry, but at the same time, is the country’s strategic industries, so the media should be striving for the government invesnance support; in order to raise funds more efficiently from capital market financing, listed companies should strengthen the media and investment banks communication and cooperation; in view of the media industry bottlenecks of funds, media companies combine with other enterprises in investment and financing is a viable financing channel; in view of the listed media companies is conversion from the institutions, so the media should focus on the cultivation of the financial management capacity of the cultivation (main the financial relationship between the ability to nurture and cultivate the capacity of the financial early warning); to make sure of the listed media companies in continued steady growth, the listed media companies should strengthen the business risk and financial risk control.