Research On The Effect Of Financial Media On Stock Market Risk Transmission

The liquidity and arbitrage space of the stock market originates from the normal fluctuation of the stock market,which brings investment opportunities to the market.However,the abnormal fluctuation may cause market panic,and then turn into systemic risk,burying the hidden danger of the financial crisis.Financial media is not only the source and communication channel of market information,but also the "booster" of investors’ expectations and investment decisions.With the development of information technology,financial media ushered in a new jump,will no doubt further exacerbate the impact on the capital market.In this context,it is urgent to study the relationship between financial media and risk occurrence and risk contagion in the stock market.There are few researches on the internal transmission effect of stock market at home and abroad,and lack a research framework that integrates the risk impact,risk transmission process and transmission level.There are few research results on the risk transmission of the stock market from the perspective of media effect,and the research on the differential effect of financial media on the stock market is insufficient.Taking the effect of financial media as the starting point and stock market risk transmission as the foothold,this paper makes an in-depth discussion on the following questions: How to establish a research framework for stock market risk transmission? What are the channels through which financial media affect the stock market risk transmission? How will it affect stock market risk transmission? How effective is the financial media in influencing the risk transmission in the stock market? What factors influence the transmission of media information and emotions? The main conclusions are as follows:First,the paper measures and describes the stock market risk transmission by constructing an analytical framework that unifies the risk impact,transmission process and transmission level.It is found that when the stock market is hit by risk,the transmission level is significantly enhanced.The risk transmission among stocks has the characteristics of time-varying and industry cluster,and the core stocks have greater risk transmission effect.The network structure characteristics of stocks reflect the different risk transmission capabilities of stocks,which will significantly affect the degree of risk contagion of stocks.Second,the paper discusses the influence of financial media’s information supply on stock market risk transmission.It is found that financial media give full play to the functions of information supply and dissemination in the capital market.By increasing the overall information content of the market and easing the information asymmetry between investors and enterprises,financial media can reduce the risk of future stock price crash of enterprises,avoid the phenomenon of stock linkage caused by misunderstanding,and reduce the transmission effect of stock market risks.Policy-oriented financial media are less affected by market factors in terms of business interests,and their fairness and fairness of information can be more recognized by the market,thus having a more significant calming effect on the impact and transmission of stock market risks.Third,this paper studies the influence of financial media information transmission on stock market risk transmission.The main conclusion is that financial media reports can enable small and medium-sized investors to obtain and understand corporate information in a more timely and convenient manner,and alleviate stock market risks to a certain extent by narrowing the cognitive differences among investors and reducing the divergence of expectations.Investor concern has accelerated the speed and scope of media coverage entering the market,thus easing stock market risk transmission.Under the influence of agenda setting and limited attention,the joint reporting of multiple stocks will amplify investors’ impression of stock correlation strength,change stock transmission ability and path,form "excessive correlation" among stocks and amplify risk transmission.When investors are blocked from obtaining corporate information due to corporate characteristics or differences in information channels,a large number of reports by financial media can effectively supplement the information for the market and also reduce the impact and transmission of stock market risks.Fourth,this paper examines the impact of financial media’s emotional shock on stock market risk transmission.The main conclusion is that positive reporting can boost market confidence and avoid excessive correlation between stocks caused by information misunderstanding,while negative reporting can cause panic and intensify risk transmission between stocks.The media’s optimistic attitude towards specific listed companies will bring investors positive market expectations,alleviate pessimism and panic,and reduce risk transmission;Positive media reports can give investors confidence when the market environment is down or the stability is poor,and effectively ease the risk transmission of the stock market.The innovation and contribution of this paper are as follows.First,it improves the research framework of stock market risk transmission.This paper introduces the method of network analysis to conduct a more comprehensive and intuitive exploration of the transmission process and transmission level among stocks.This paper focuses on the factors of risk transmission in the stock market(risk impact,risk transmission process,risk transmission level),and analyzes the relationship and function of each factor.The second is to expand the research on the causes of stock price crash risk from the perspective of external governance.This paper discusses the heterogeneity of policy-oriented and market-oriented financial media,and verifies the influencing mechanism of corporate characteristics and information channels,providing more abundant evidence for the cause theory of stock price crash risk from the perspective of external governance.Third,it enriches the research ideas of media effect and stock market.From the perspective of information supply and emotional impact,this paper studies the action mechanism of financial media on stock market risk transmission,and analyzes the heterogeneity of effective communication of information and emotions from the perspectives of media diversity,investor behavior and market environment,enriching and improving the research ideas of media and stock market.It provides a new perspective for the study of the formation cause and influence mechanism of risk transmission.The research conclusions of this paper are helpful for market regulators and investors to understand the logic of the formation of risk transmission in the stock market from the information and emotional channels,and provide theoretical reference and policy enlightenment for improving the market information transmission system,guiding enterprises to optimize the information disclosure and governance mechanism,and improving the investment concept and ability of investors.