A Study On The Relationship Between Media Supervision And Corporate Performance

In highly developed information era, the media power continues to rise. It not only plays the role of passing information to the public, but also has been focused on government regulators such as the SFC as an important external governance oversight mechanism in recent years. Shocked the world as "Enron", strong involvement of the media makes the company’s illegal violations begin to emerge. Ultimately, the world’s leading companies collapsed, marking the media market supervision and perfect victory. Media monitoring is an integral part of developed market economy. It has a significant impact on the company’s performance and speeds up the "survival of the fittest". Based on the related literature at home and abroad, and in the media governance theory, reputation mechanism theory and stakeholder theory, this paper systematically analyzes how the media supervision puts influence on corporate performance from the operation way and the way of corporate governance. Also it draws a conclusion that in the short term and long term, negative media coverage by the above two ways has a positive role in promoting company’s performance. and the corporate performance rising in the short term by the operating way is the result of earnings management. Therefore, in order to exert a positive effect on corporate performance, from the perspective of the media itself, it should enhance its reliability to maximize its oversight role; from the government’s perspective, they need to ensure the media oversight role into full play; from the industry point of view, the company should establish performance evaluation system based on actual operating conditions.