Research On The Motivation Of Keming Food’s Share Repurchase From The Perspective Of Opportunism

With the improvement of share repurchase policy in China,more and more listed companies are implementing share repurchase,but some problems are gradually exposed,some companies,for example,use share buybacks to satisfy the private interests of their controllers or management.Therefore,it is necessary to study the real motivation of share repurchase of listed companies.In order to help investors identify the real motives of share repurchase and standardize the share repurchase behavior of the company,this paper uses the case study method to study the motivation of Katsuaki’s twice share repurchase.This paper first introduces the stock repurchase process of Keming food and analyzes and verifies its announcement motivation,finding that its announcement motivation is not completely true,so it is reasonable to suspect that the share repurchase of the company has hidden motivation.Subsequently,this paper studies the hidden motivation of Katsuaki’s share repurchase with the help of managerial opportunism hypothesis.Finally,this paper analyzes the causes and effects of the opportunistic share repurchase,and according to the causes,puts forward relevant governance recommendations,that is,listed companies should improve the governance structure,strengthen internal audit,at the same time,the rational use of share repurchase to enhance their own strength.In addition,the supervisor should strengthen the repurchase supervision,set up the punishment mechanism,and further improve the share repurchase policy.The main conclusions of this paper are as follows: first,the share repurchase of Keming food has opportunism motive,and the company takes the share repurchase as a tool to realize the interests of the major shareholders and the management.Second,the opportunistic share repurchase has had the bad influence to the small and medium-sized shareholder,the creditor and the capital market.It is hoped that the relevant research and governance recommendations in this paper can make contributions to the regulation of share repurchase behavior of listed companies.