A Study Of The Impact Of Media Coverage On Debt Financing Of Listed Companies

Debt financing is an important way for the external financing of enterprises,which can help enterprises to obtain the funds needed for production and operation.It plays a vital role to the development of enterprises.The existing literatures mainly look for factors that affect debt financing from the aspects of institutional environment,corporate characteristics,corporate governance and so on.But there are few literatures on the impact of informal institutional factors on debt financing.In the highly developed information technology today,the media impact of business management is increasingly important.There have been a large number of cases show that media coverage have a significant impact on corporate debt financing,such as the Lam Tin incident and the Zhangzidao scallop incident,but no scholars have a systematically discussion of the impact mechanism of media coverage on corporate debt financing.This paper takes China's A-share listed companies from 2010 to 2014 as the research object,analyzing thetwo dimensions of positive media coverage and negative media coverage based on the perspective of financial institutions,trying to reveal the impact mechanism of the media coverage to corporate financing constraints,debt maturity structure and debt financing costs,and made a thorough analysis based on the difference of Ownership Nature.The main conclusions of this study are as follows:First,the positive media coverage can reduce the degree of financial constraints,while negative media coverage will exacerbate the degree of financial constraints;media positive coverage of state-owned enterprises to ease financial constraints greater than non-state-owned enterprises,while there is no significant difference about affectations of the financial constraints among the different ownership nature;Secondly,the positive media reports will increase company's long-term debt ratio,and negative media reports will reduce the proportion of long-term debt;media positive reports increase non-state-owned enterprises' proportion of long-term corporate debt is greater than that of state-owned enterprises,and negative media reports reduce state-owned enterprises'proportion of long-term debt is better than that of non-state-owned enterprises;Finally,the media positive reports can reduce corporate debt financing costs,and negative media reports will increase corporate debt financing costs;media positive reports to reduce the debt financing costs of non-state-owned enterprises is greater than the state-owned enterprises,and negative media reports of state-owned enterprises to increase the debt financing costs is greater than non-state-owned enterprises.There are three main innovations in this study:First,the paper constructs a Heckman two-stage model which focuses on the impact of corporate finance constraints on corporate finance.It reveals the influence mechanism of different media concerns on corporate financing constraints,and explores the impact of different nature of property rights.First of all,this paper builds a Heckman two-stage model,which draws attention from Heckman's(1979)two-step estimation method,which is an effective analytical tool for subsequent research on media attention.Secondly,this paper confirms the impact of media attention on corporate financing constraints from the media point of view,which provides new evidence for the media to play the role of information intermediaries and governance in the capital market.It also enriches the relevant literature on the factors affecting financial constraints,the introduction of corporate finance constraints to alleviate the principles and policies to provide a useful inspiration.Finally,this paper reveals the impact of media attention on the financing constraints of listed companies with different property rights.It is suggested that follow-up studies must pay attention to the importance of property rights issues in financing constraints,specific guidance significance.Second,this paper constructs a Logit regression model,which is concerned with the maturity structure of corporate debt.The paper reveals the effect of different media concerns on the maturity structure of corporate debt,and explores the impact of media attention on the debt maturity structure of different property rights.On the one hand,this paper enriches the research results of the debt maturity structure,expands the research scope of debt maturity structure,and fills the gap of media attention on the maturity structure of debt,confirming that media attention will affect the debt maturity structure significant effect.On the other hand,this paper also expands the mechanism of the impact of media concerns on the maturity structure of corporate debt in different property rights,and provides scholars with a solid theoretical basis for further research on informal debtor structure of different property rights.Reliable empirical evidence has important theoretical value and practical significance.Thirdly,this paper constructs a tendency matching model of the media's influence on the cost of corporate debt financing.Through empirical analysis,it clarifies the mechanism of different nature media's influence on corporate debt financing cost,and makes an exploratory analysis based on property difference.On the one hand,from the perspective of media attention,this paper opens up a new perspective of debt financing costs research,expanding the scope of traditional debt financing costs,which laid a solid foundation for the further study of the debt financing costs of listed companies;In this paper,the propensity score matching method is used to weaken the endogeneity problem which may exist in the study.The results show that the research conclusion is reliable,which provides a reliable research tool for the subsequent research of debt contract from the media perspective.