Media Attention, Internal Control And The Risk Of Stock Price Collapse

In the context of the phenomenon of stock price crash that occurs from time to time in the capital market,the research on the causes of stock price crash risk and how to control it has become a hot topic in academic circles.From the external perspective,with the development of the Internet,the role of media in the capital market is getting more and more attention,the existing research suggests that the media can effectively play the role of external governance,and from the point of enterprise interior,since the United States enron,internal control gradually brought to the attention of the countries,its can effectively control the risks of the enterprise.Therefore,this paper starts with the internal and external governance methods of enterprises,takes the 2013-2017 a-share listed companies as the sample,studies the inhibiting effect of media concern and internal control on the stock price crash risk,and further explores the mutual relationship between the two in this process.The research findings :(1)media concern can play the role of external governance,inhibit the future stock price crash risk;(2)internal control can also reduce the risk of future stock price crash;(3)media concern and internal control are substitutes for each other in restraining the stock price crash risk,when one party has defects,the other can play a more effective role in restraining the risk of stock price crash.In the further group discussion,it is found that the two can play a more effective role in restraining the stock price crash and have a more obvious substitution effect when the enterprise itself has a larger earnings management behavior,that is,a lower financial transparency.The conclusion of this paper has certain reference significance for how to reduce the risk of stock price crash and improve the steady development of the capital market in China.On the one hand,relevant regulations should be adopted to maintain the independence of the media;on the other hand,the construction of the internal control system of enterprises should be promoted;on the other hand,the information transparency of enterprises should be enhanced by combining the internal and external governance mechanisms,so as to reduce the risk of stock price crash and maintain the stable development of the capital market.