Study On The Effect Of Media Coverage About Performance On The Stock Market

With the rapid development of science and technology, internet has become the main platform for media to deliver information, and the financial news, no matter post-ed on the traditional media, the emerging media or the famous websites, have affected the investors’investment decision-making to a certain extent. Chinese market with lots of hype news, is the main trading market for retail groups, and the financial news which is issued by media, a medium for information transmission, is main concern of inves-tors, as a result, the decisions made by investors are guided by media coverage. There-fore, analyzing the behavior of media information-release and the investors’reaction about that behavior, has a certain theoretical and practical significance for the study of network information transfer and actual investment value.From the perspectives of the analysis of investors’behavior, and the relation be-tween media coverage and information transfer, this paper takes the corporate perfor-mance media coverage on the website of finance.ifeng.com from January 1,2011 to September 1,2014 as the research object, confirms that the media coverage about the performance has a certain impact on the investment decision-making of investors by using the event analysis method.The empirical research results show that, there is no significant difference between positive news and negative news about the performance information about the "net profit" released by media coverage, that is, there is no bias for the media when report-ing positive and negative news of the listed companies in various industries, and the media performance coverage does not favor the good news or bad news. However, for the positive news and negative news about performance in different ranges, there is a great difference between the coverage about positive performance range (30%—59%) and negative performance range (-30%—59%). For the influence of media coverage about performance in different ranges on investors, the coverage about the positive earnings range (1%—29%) have no positive impact on investors, while the rest ranges of positive coverage have a positive impact on investors, among which, the perfor-mance range (30%—59%) has the greatest influence on investors. Media coverage of all ranges about negative earnings performance have brought negative influence to in-vestors, among which, the performance range (-30%—59%) has the largest negative impact on investors. The positive effect of the mainstream media coverage about the positive performance news on investors is less than other non-mainstream media, while the negative effect of the mainstream media coverage about the negative performance news on investors is greater than other non-mainstream media. It further indicates that, investors will not pay much attention to the source of the news when it comes the posi-tive performance news reported by media, but care more about the times the positive news reported. However, investors will pay much attention to the source of negative performance news, but not to the times of news which was reported. Investors will not consider the authority of the media when paying attention to the good news about per-formance; while for the bad news about performance, they will consider the authority of the media.