The Research Of The Relationship Between Media Attention And Accuracy Of Management Earnings Forecasts

As China’s market economy, the capital markets are developing rapidly, theresearch literature operational mechanism for the capital market is also increasing.With the Internet and other new media development, the effect of the media hasbecome increasingly apparent, the media as a monitoring mechanism outside of thelegal system, can play its role in the company’s governance role to play, can serve asa warning to supervise the management of listed companies effect. Meanwhile, themanagement of listed companies to voluntarily earnings forecast as the company’smanagement of its earnings in future periods condition and results of operations ofthe forecast, while the financial forecasts as a mandatory supplemental content, itsaccuracy is affected by various factors. Currently the accuracy of earnings estimateson the impact factor of research has focused on predicting the length of time,company size, analysts tracking the company’s profitability and the company’sownership concentration, etc.; For the media attention focused on the study of mediaattention on corporate governance study the role of impact on agency costs, as wellas media attention on the impact of the company on an accrual mispricing.Taking the2010-2012three-year quarterly earnings forecast12listedcompanies in Shanghai and Shenzhen A-share listed companies as samples studied,the main research concerns the relationship between the media and the managementof listed companies profit forecast accuracy by analyzing the media attention onaffect the accuracy of the company’s management earnings forecasts, research mediaattention on corporate governance mechanism. The proxy variable Djinninformation online about the number of listed companies in the news as the mediaattention, the ratio of the absolute value of the difference between actual andpredicted values and actual earnings per share forecast values listed as thecompany’s management earnings forecast accuracy of substitution variables. Theprofit forecast accuracy as the dependent variable, the media attention asexplanatory variables may affect the accuracy of management’s earnings forecastvariables as control variables. Articles will be artificial division of media attention,which was the organizer of the relevant units of government or policy-orientednewspapers as the media attention, the rest of the newspaper as a market-oriented media.The results show that: in the case of certain other conditions of media attentionand management earnings forecast accuracy is positively correlated, under thecontrol of nature in the premise, the higher the degree of media attention, thecompany’s management earnings forecasts more accurate information; relativemarket-oriented media, policy-oriented media, a greater degree of influence on themanagement earnings forecast accuracy. The study results will enrich the researchliterature management earnings forecast accuracy will be the first to explore therelationship between media attention and information management earnings forecastaccuracy...