The Supervision Effect Of Media Coverage On Private Listed Companies

For a long time, The academics study on the supervision and administration of the media tend to focus on the role of media supervision of government,but research of the governance effect of media on the listing corporation are very weak.As an important external corporate governance mechanism,in recent years,The corporate governance role of the media gradually begin to attract domestic scholars.In this paper’ research of media coverage on the effect of corporate governance,in order to find the neglected factor which effect issues in China.There is an important practical significance to research of the media coverage on the effect of listing Corporation governance in China.This paper is based on the practice in china,Seeing media as a kind of external company governance mechanism.This paper comprehensive combines the method of theory analysis、case analysis and theoretical research to research media coverage on the role of corporate governance.First of all, this paper use the theory to explain the origin of modern corporation theory of media supervision of corporate governance;Then use the theoretical analysis of the characteristics、the influencing mechanism and influencing factors which media coverage on the corporate governance.Then, in the case study, this paper take zixin Pharmaceutical’illegal related transactions as the example.Attempts to illustrates the relationship between media and corporate governance.Finally, this paper from two aspects of the objectivity of media coverage and media company-regulatory effect on an empirical analysis of effect of media coverage on the corporate governance of privatized firms.Studies show that the number of media coverage significantly positive related to news attention of China’s private listing Corporation.The company’s market focus will significantly increase the probability of their regularities were revealed.to a certain degree,it proved that the media is unbiased,The media tend to report high-profile hits.At the same time,Whether the media is ST and audit opinion is standard have a significant positive correlation with media coverage.In the empirical research on whether the media effectively to improve the governance of private listing Corporation,Our study shows that media coverage significant positive correlation with the probability of private listing corporation to correct its irregularities;The media reported more on the irregularities of private listing corporation,increases the possibility to correct irregularities.Increase in the media coverage by one,the probability of correct irregularities of private listed enterprises increased by0.29percentage points.from an media types point of view, Whether the media coverage is policy-oriented or market-oriented,there is positive relationship towards private listed companies.The report in the help to correct the irregularities private listing Corporation.At the same time, we can find that policy-oriented media’supervisory role is greater than the market-oriented media.Finally, based on the above analysis,In order to give full play to the role of media governance mechanism、improve the level of corporate governance.This paper puts forward the policy recommendations from three aspects of media、private listing Corporation and government authorities, In order to promote China’s private corporate governance level.