Motivation Of Stock Repurchase In Internet Media Companies And Its Impact On Performance

Stock repurchase originated in Western countries and developed rapidly to become a capital tool that can effectively control stock prices.With the improvement of my country's economic system reform,the development of the capital market has become increasingly mature,the state has gradually relaxed restrictions on stock repurchase,and relevant laws and policies have been continuously promulgated.As an important capital tool,stock repurchase has been continuously used by the management of listed companies.The revised "Company Law" in October 2018 expanded the scope of stock repurchase,increased the flexibility of stock handling after repurchase,and set off a wave of stock repurchases of listed companies in my country.The market effect of stock repurchase,as the response of the capital market,can objectively reflect the impact of stock repurchase on the company's value,so as to further explore the impact of stock repurchase on company performance.This is not only conducive to the country's improvement of relevant laws at the macro level,but also conducive to the company's improvement of its own operations and management at the micro level.Based on the institutional background of the detailed rules for the implementation of the share repurchase of listed companies issued by the Shanghai and Shenzhen exchanges in 2019,this article focuses on the Internet media,an emerging asset-light industry,to explore the reasons for the implementation of the share repurchase by Sanqi Mutual Entertainment and its impact.The impact of performance will provide some reference for the future stock repurchase of listed companies in this industry.This article first summarizes the related research results,theoretical basis and legal system background of stock repurchase,and analyzes the research path of the impact of stock repurchase on company performance.Combined with the financial data of Sanqi Mutual Entertainment and the reasons for the repurchase,it is concluded that the main reason for the stock repurchase in the Internet media industry is the implementation of equity incentives;share repurchase can enhance the confidence of external investors;shares Repurchase can bring good governance effects for listed companies;share repurchase can also optimize the financial performance of listed companies.Four suggestions are put forward based on the characteristics of the industry: improve and innovate equity plans to encourage companies to use stock repurchases reasonably;make full use of national policies to choose the timing of repurchase;improve and develop relevant laws and regulations on stock repurchase and increase penalties for violations The strength of the stock repurchase.