The Study Of The Role Of Media Attention On Earnings Management Governance

Existing empirical research on earnings management is mainly based on theperspective of the company’s internal governance, by earnings managementmeasurement models，such as modified Jones model to derive earnings managementfactors, these factors are the company’s main characteristic factors，but on factors ofcompany’s external relative lack of research. In this paper, we use the number of newsas a proxy variable for media attention, Innovative research earnings managementfactors from the perspective of the external corporate governance, thereby hoping toimprove earnings management research system.Firstly, theoretically through the study and analysis of existing research,exploring the specific path of the role media attention play on earnings management.On this basis, using the database search for the number of news associated with thelisted company, to build media attention indicators, through the establishment ofmodels, by2000-2012listed companies in Shenzhen and Shanghai as sample,collecting data for empirical analysis, pursuant to the media attention on governanceearnings management analysis and study, study of media attention on the impact ofdifferent motives earnings management, while looking for evidence of mediaattention influence on earnings management.Empirical findings do have a correlation between media attention and earningsmanagement, in which the total amount of media attention, the non-negative mediaattention, the time of media attention, and earnings management is positivelycorrelated; Negative media attention and earnings management is negativelycorrelated, and have greater role relative to the non-negative media attention; InChina’s capital market, the non-negative media attention play a dominant role， andnegative media attention has a governance role to earnings management, thenon-negative media attention can reduce, but can increase the level of companies’earnings management. The total amount of media attention and the time of mediaattention and the earnings management to avoid delisting and the earnings management to the allotment is correlated. The more the number of media reports oflisted companies, the longer the time of media reports of listed companies, the smallerthe probability of the earnings management to avoid delisting and the earningsmanagement to the allotment.