Media Coverage And Quality Of Accounting Information

Besides the formal legal system, Media coverage is playing an increasingly important role for the development of capital market. In-depth report of Enron by 《Fortune Magazine》 has made its fraud truth surfaced to people. The sustained attention by Chinese media of Yinguangxia, has exposed the inside trade of the first blue-chip, and thus guide the whole society concern about the quality of accounting information.In recent years, relationship between Media coverage and Capital Market has caused widespread concern. Western academics have published lots of Empirical research, mainly in Media coverage and Stock, Media coverage and Investors, Media coverage and Corporate Governance, Media coverage and Information Disclosure, and other aspects. Media coverage has also been widely studied in China, but most research focus on whether the Media coverage has Governance role, and how to implement its Governance role. In the empirical research of Media coverage and Accounting information, Chinese academics just choose the Newspaper Media as the research object, ignore the Governance role of Internet Media, and appear two contrary empirical results. Based on this background, the author studies the effect of Media coverage and Negative Media coverage on the quality of Accounting Information of companies which listed in Shenzhen Motherboard A-share, and consider both Newspaper Media and Internet Media.This article can be divided into five parts:The first part is an introduction. In this part, the author first points out the research background and research significance, and then reviews the relevant studies, both in the Governance Role of Media coverage, and the factors that affect the quality of Accounting Information, in order to find out the relation between Media coverage and the quality of Accounting Information. And at last, shows the structure and possible innovations of this article. The second part is the related theories and the proposal of Assumptions. Firstly, author defines the related concepts and elaborates the Effective Supervision Theory of Media coverage. Secondly, describes the paths how Media coverage affects the quality of Accounting Information, the first path is the administrative governance path, the second path is the path of corporate governance, and the last path is a reputation management path. And in the end, the author presents empirical research hypothesis.The third part is the research design of this article. Firstly, the author explains the sample selection method and data sources. Then, give the definition of the Metrics of Media coverage and the quality of Accounting Information, and selects the proxy variables. Finally describe the models for empirical research;The fourth part presents empirical testing and analysis. At first, the author gives the descriptive statistics of variables involved in the models. Secondly, tests and analyzes the effect of Media coverage and Negative Media coverage on the quality of Accounting Information, both in Newspaper Media and Internet Media.The conclusions and recommendations are presented in the last part. Firstly, the author gives the conclusions of this research; And then makes some recommendations.The contribution of this paper is that the author collects the Media coverage about the listed companies. In the database exist now; there are not data of Media coverage about listed companies. To complete the research, author collects the Media coverage and Negative Media coverage about the listed companies, from both Newspaper Media and Internet Media, by searching in Chinese important newspaper database and Baidu News.The innovation of this article is that author considers both Newspaper Media and Internet Media. Previous studies just choose the Media coverage of several important Newspapers, ignore the Media coverage of Internet, which has an increasing influence, this may affect the result of empirical research.The limitation of this paper is the definition of Negative Media coverage, which has no strict definition in academia. To reduce subjectivity and increase comparability, author chooses44negative words to define Negative Media. However, picking of the negative words is also subjective, this cannot be avoided. Author hopes that the future research can solve the problem.