The Corporate Governance Effect Of The Media

Good corporate governance is essential to protect the healthy development of capital markets, and it is alsothe necessary condition to improve the operating performance of enterprises and enhance competitiveness. With the expansion of public opinion pressure and the reform of news system, the media plays an increasingly important effect oncorporate governance, helping to ensure that the market is effective, transparent and fair, protect the interests of investors, improve the surveillance system of capital markets.Undoubtedly, the real media information can play a positive effect on corporate governance, but untrue and false information will result in adverse media social consequences. The Zoomlion suffered express from a series of false news reports publishedNew Express Daily, these news report questioned and vilifiedZoomlion in the past two years, the event attracted small investors, competitors, the social public and the police, prosecutors, China Journalists Associationand other government departments.In view of this, I believe that the media as a system of extra-legal institutions hss effects on corporate governance, but the media’s inaccurate or false reports hinders its function. Firstly, this paper introducestheories and literature、theories of external governance、theories of the media. Summarizing the positive effect and the negativeeffect of corporate governance of the media in China.On these bases, this paper introduces thereview of the events, analysis of the inflated profits and the transfer of benefits, then, analysis ofpropagation path of the false reports, including the role of the listed companies, the role of the media,the role of the socia public,the role of the government, and analysis of the economic consequencesof the false reports. Lastly, whereas the reality of the false reports and the the serious consequences of the false reports,this paper put forwardsuggestions from the standpoint of the listed companies,, the media and the government, in order to help the media hasa good corporate governance in China.