Share repurchase and sustainable financial growth—Based on the analysis of mediating effect model

Considering Chinese listed companies' repurchases in manufacturing industry from 2005 to 2018 as a sample, this paper uses the mediation effect model to empirically study the relationship between share buybacks and sustainable financial growth. The conclusions of the study are as follows. (1) Regarding the Chinese capital market, share repurchase can in general promote corporate sustainable development. (2) Capital structures plays a partial mediating role between share repurchases and sustainable financial growth. This study expands the research scope of the economic consequences of share repurchases and has certain implications for the implementation of repurchase decisions by firms.